Danone Invests Over 15 Billion Yen to Expand Tatebayashi Factory in Gunma Prefecture by Approximately 1.5 Times

Danone Japan Co., Ltd. (Headquarters: Meguro-ku, Tokyo; Representative Director and President: Rodrigo Lima; hereinafter "Danone Japan") announced an investment totaling over 15 billion yen to expand the total floor area of its own factory in Tatebayashi City, Gunma Prefecture, by approximately 1.5 times. With this expansion, a new production system is scheduled to commence operations in 2028. **[Background of Factory Expansion]** As part of the Danone Group's strategy to position Japan as an important growth market, Danone Japan is strengthening its domestic production system to respond quickly and stably to changing consumer needs and continuous category growth. Danone Japan has continued to grow steadily, achieving approximately 40% market share expansion in Japan's yogurt and lactic acid beverage market by 2025 compared to 2018 (※1). In particular, its main brands, including "Danone Bio," "Danone Oikos," and "Danone Yogurt," have received strong support from consumers, and demand has continued to expand in recent years. In addition to accelerating this growth, Danone Japan decided to expand its own factory, judging that building a more stable and agile production system is indispensable to flexibly and reliably meet future expanding and diversifying health needs. By adding approximately 7,000 square meters to the existing Tatebayashi factory by 2028, the production base will be further strengthened. **[Coexistence with Local Community and Sustainability Design]** Since the establishment of the Tatebayashi factory in 2002, Danone Japan has produced all yogurt products sold domestically at this factory, walking hand-in-hand with the local community. In addition to developing community-rooted initiatives such as acquiring naming rights for Jonuma General Sports Park (Danone Sports Park) in the city and participating in conservation activities for Satonuma, a Japan Heritage site, Danone Japan signed a comprehensive partnership agreement with Tatebayashi City in November 2025, promoting collaboration in various fields such as health, sports, and environment. This factory expansion is expected to contribute to the regional economy through the creation of new employment, and also incorporates sustainability-conscious designs, such as the installation of solar panels on the factory roof and the introduction of cooling equipment (ammonia chiller) using low-environmental-impact ammonia. **[Comment from Representative Director and President Rodrigo Lima]** "I am very pleased to enter a new growth phase with this factory expansion in Tatebayashi City, Gunma Prefecture, where we have built a long-standing relationship of trust. Under Danone's mission of 'bringing health through food to as many people as possible worldwide,' Danone has continued to create products that meet the diversifying and sophisticated health needs of the people of Japan. The new factory will not only support the stable supply of our main brands but will also be an indispensable facility for manufacturing new product categories and innovative products. We will continue to prioritize coexistence with the local community and contribution to the regional economy, while engaging in more flexible and agile manufacturing to contribute to the creation of health value through food." **[Comment from Head of Operations Xavier Deprez]** "We are pleased to continue delivering products to consumers by expanding production capacity in key growth areas in the Japanese market and introducing new production lines. We will continue to invest in growth and the future, and further strengthen our reputation as a Top Employer (※2)." (From left: Tomoya Takebuchi, Head of Sales, Danone Japan; Takahiro Goto, Factory Manager, Danone Japan Tatebayashi Factory; François Xavier Lienard, Director, French Chamber of Commerce and Industry in Japan; Yasuhiro Otsuka, Vice Governor, Gunma Prefecture; Rodrigo Lima, Representative Director and President, Danone Japan; Yoshihiro Tada, Mayor, Tatebayashi City; Kimikatsu Baba, Representative Director and President, Araigumi Co., Ltd.; Xavier Deprez, Head of Operations, Danone Japan; Yusuke Fujiwara, Head of Procurement, Danone Japan; Susie Sha, Mirai Project Manager, Danone Japan) *Titles omitted **** * **Name:** Danone Japan Tatebayashi Factory * **Location:** 366-1 Shimo-Hayakawada-cho, Tatebayashi City, Gunma Prefecture * **Investment Amount:** Over 15 billion yen * **Increased Floor Area:** Approximately 7,000㎡ * **Total Floor Area After Expansion:** Approximately 22,400㎡ (planned) * **Increased Building Area:** Approximately 6,000㎡ * **Products Manufactured:** "Danone Bio," "Danone Oikos," "Danone Yogurt" * **Operation Start Date:** 2028 (planned) * **New Job Creation:** Approximately 50-100 people ※1: According to Danone Japan's survey, Intage SRI+ estimated sales volume (value basis) of the yogurt and lactic acid beverage market: January 2018 - January 2025. ※2: An international certification awarded by the independent organization "Top Employers Institute" to companies that implement excellent HR policies in various countries worldwide. Danone Japan has been certified for two consecutive years in 2025 and 2026.