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Lactalis Canada has announced it will be shutting down its plant-based manufacturing facility in Sudbury, Ontario, marking the company’s full exit from the plant-based beverage category.

The dairy giant began to convert the Sudbury plant – a milk processing plant for six decades prior – to a fully plant-based facility in 2022, before celebrating the site’s official reopening in June 2024. It was Lactalis Canada’s first dedicated plant-based facility, producing high-protein and unsweetened dairy-free beverages for its plant-based Enjoy brand.

This week, just over a year later, the group has confirmed it will be closing down the site from 12 December 2025. In a statement, the company said this was due to ‘a shift in market dynamics and the challenges associated with the broader economic climate, all of which have led to a sustained decline in the plant-based beverage category’s performance’.

The statement reads: “Unfortunately, continuing operations is no longer financially viable and sustainable business for Lactalis Canada”.

“We are incredibly grateful to our employees in Sudbury for their dedication and contributions over the years. We also extend our sincere thanks to the city of Sudbury for its longstanding partnership and support throughout our time in the community.”

The Sudbury facility was originally established as a traditional dairy processing plant in 1962. In 2023, Lactalis Canada received a $1.4 million investment from the Ontario government to support the site's conversion into a premium plant-based facility, aiming to create jobs, boost local food production and stimulate expansion and diversification in the local agri-food sector.

FoodBev Media has approached Lactalis for further information on the exact number of jobs set to be impacted by the closure.