SunOpta Invests $26 Million To Expand California Plant-Based Beverage Processing Facility

MINNEAPOLIS — SunOpta announced it has completed a $26 million expansion at its Modesto, Calif. facility. As the second largest project in the company’s history, the expansion allows SunOpta to increase the amount of oat milk produced annually by more than 60%, meeting ongoing customer demand and demonstrating SunOpta’s commitment to plant-based beverage production.

Commercially launched in May, SunOpta’s Modesto oat extraction production line uses proprietary enzymatic processes to break down whole oats into a liquid oat base that will then be used to make oat milk and other products such as plant-based yogurt and ice cream. The new expansion has created 17 new jobs in the community. SunOpta supplies liquid and dried oat base as an ingredient to companies large and small, manufactures oat milk for brands and food service operators throughout the country and produces private label oat-based products for many national retailers.

“Through this significant investment in Modesto to produce more oat base, 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 SunOpta’s newly expanded Modesto facility include:

• 167,684 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 at SunOpta, and there is still room to grow, the company said. 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 milks will grow mid-single digits for calendar year 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 over $45 billion by 2034.

SunOpta’s Modesto facility is part of a broader strategy not only for production but also for sustainability. SunOpta’s four aseptic manufacturing plants are strategically located in Modesto, Calif., Allentown, Pa., Alexandria, Minn., and Midlothian, Texas, creating a diamond-shaped national network for distribution. 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, said the company.

SunOpta’s Modesto location works closely with Pacific Gas & Electric, Central Valley Ag and other local municipalities to minimize the environmental footprint of the manufacturing process and looks forward to collaborating with additional local organizations.

“SunOpta loves the Central Valley, and the Central Valley loves SunOpta,” said Joe Gerhardt, senior plant manager. “We are proud to be a leader and partner in the local community for the long term, fueling the future of food.”

In keeping with the company's long-standing tradition of commemorating major milestones with a planting, SunOpta will install a pollinator habitat at its Modesto facility to celebrate the commercialization of its new expansion. This gesture will be marked at an upcoming ceremony.