Expansion Work On SunOpta's California Facility Complete
SunOpta has completed the expansion of its facility in Modesto, Calif., which will allow the company to expand its oat milk production by more than 60%.
Commercially launched in May, SunOpta’s oat extraction production line uses proprietary enzymatic processes to break down whole oats into a liquid oatbase that will then be used to make oat milk and other products such as plant-based yogurt and ice cream.
The $26 million expansion project created 17 new jobs. SunOpta supplies liquid and dried oatbase as an ingredient to companies large and small, manufactures oat milk for leading brands and food service operators throughout the country, and produces private label oat-based products for many top national retailers.
“Through this significant investment in Modesto to produce more oatbase, we’re well positioned to meet the increasing market demand for plant-based milk and other oat-based products,” said Brian Kocher, CEO of SunOpta. “We are also pleased to bring 17 new positions to our Modesto team and continue making a positive impact in the communities in which we work and live.”
Key features of the newly expanded facility include:
- 167,684 total square feet of production space
- 17 new jobs bringing the total Modesto-area employment to 208
- Reduction of nearly 800,000 freight miles in SunOpta’s network per year
Plant-based milks have been a major focus in recent years for SunOpta. Based on the latest publicly available data and SunOpta's proprietary sales order data, the company estimates the category volume for shelf-stable plant-based milk will grow mid-single digits in 2024 across all channels combined. Depending on the source, the plant-based milk market is estimated to grow from approximately $20 billion in 2024 to more than $45 billion by 2034.
SunOpta officials said the Modesto facility is part of the company's broader strategy that also includes sustainability. In addition to the California facility, SunOpta operates three other manufacturing plants in Allentown, Pa.; Alexandria, Minn.; and Midlothian, Texas. Additionally, the network of regional plants has the potential to reduce more than 15 million freight miles annually and save 59 million pounds of carbon emissions.
