SunOpta Inc. announced it has completed a $26 million expansion at its Modesto, Calif. facility. As the second project in the company's history, the expansion allows SunOpta to increase the amount of oatmilk 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 oatbase that will then be used to make oatmilk 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 oatbase as an ingredient to companies large and small, manufactures oatmilk for leading brands and food service operators throughout the country and produces private label oat-based products for many top national retailers.

After considering the incremental investment, key features of SunOpta's Modesto, California 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 at SunOpta, and there is still room to grow. 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 USD 20 billion in 2024 to over USD 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. 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.