Lactalis, a French multinational dairy group, is exiting the Canadian plant-based market due to unfavorable market conditions. The company’s decision to close its Sudbury plant-based beverage facility marks a significant shift in its Canadian operations. Effective December 12, 2025, Lactalis will fully withdraw from Canada’s plant-based beverage sector. The closure impacts approximately 25 employees at the Sudbury plant.
Closure Details and Timeline
The Sudbury plant, located at 500 Barry Downe Road, Sudbury, Ontario, has been operational as a plant-based facility since June 2024. It was converted from a dairy processing plant that operated from 1962 until 2024. The closure is set to be completed by December 12, 2025, as stated by Lactalis Canada. To stay updated on the latest developments, you can visit Lactalis Canada’s official website.
The plant’s conversion to a plant-based beverage facility was supported by a $1.4 million investment from the Northern Ontario Heritage Fund Corporation (NOHFC) in 2024. You can learn more about NOHFC’s initiatives on their official website.
Economic Context and Reasons for Closure
Lactalis cited “changed market dynamics” and a “sustained decline in the plant-based beverage category’s performance” as key reasons for the closure. The company stated that continuing operations was “no longer financially viable and sustainable business for Lactalis Canada.” This decision highlights the challenges faced by companies in the plant-based sector, which has seen significant fluctuations in demand. For more insights on the plant-based market trends, you can check out this article on the booming plant-based dairy market.
Some of the factors contributing to the decline include:
* Increased competition in the plant-based beverage market
* Changing consumer preferences
* Financial sustainability concerns
These factors have led to a reevaluation of Lactalis’s business strategy in Canada.
Product Lines and Market Implications
The Sudbury plant produced the Enjoy brand, which included six high-protein plant-based drinks launched in 2024. The closure signifies Lactalis’s complete withdrawal from Canada’s plant-based drink market. This move may have implications for the competitive landscape of the Canadian beverage industry. The Enjoy brand was a relatively new addition to Lactalis’s product portfolio, and its discontinuation may create opportunities for other manufacturers. For those interested in exploring other plant-based options, you can submit your favorite local dessert shop to our business directory.
The plant-based beverage market has been experiencing significant growth globally. However, Lactalis’s decision to exit this market in Canada suggests that the company is reassessing its priorities. You can learn more about the growth of the vegan desserts market on our site: Vegan Desserts Market Growth.
Company Background and Continued Dairy Operations
Lactalis is a well-established dairy group with a presence in Canada through brands like P’tit Québec, Beatrice, Lactantia, Balderson, and Astro. Despite exiting the plant-based market, the company will continue its dairy operations in Canada. The Sudbury plant has historical significance for dairy production, having operated under previous ownerships, including Parmalat Canada. For more information on dairy-related news, you can check out our article on dairy competitions in 2025.
The company’s decision to maintain its dairy operations while exiting the plant-based sector may be attributed to its core business strengths. Lactalis has a long history of dairy production, and this segment is likely to remain a key focus area for the company.
Community Impact and Employee Support
Lactalis has pledged support for the affected employees, although the specifics of the severance terms have not been disclosed. The company expressed gratitude to its Sudbury employees for their dedication and contributions over the years. They also thanked the City of Sudbury for their long-standing partnership and support. As the community adjusts to this change, local businesses may explore new opportunities. If you’re a local business owner, consider sharing your story or submitting your dessert recipe to be featured on our site: Submit Your Dessert Recipe.
The closure of the Sudbury plant marks the end of a significant industrial presence in the local community. However, it also presents opportunities for growth and development in other areas. For more information on sustainable dairy practices, you can explore our article on lab-made milk redefining sustainable dairy.
