Suntory Beverage & Food France has confirmed the impending closure of its La Courneuve production facility as part of a strategic restructuring initiative aimed at enhancing operational efficiency and competitiveness in the challenging French market.

This decision is part of a broader plan that includes an investment of over €170 million by 2030 to adapt to market dynamics and address rising production costs.

The La Courneuve plant, a longstanding site for Suntory since the 1970s, has faced operational constraints due to its urban location, which limits its capacity to meet modern production demands.

The plant primarily produced a variety of beverages, including popular brands such as Orangina and Schweppes. These products typically encompass carbonated soft drinks, fruit beverages and other non-alcoholic drinks that cater to the French market.

The facility has been a significant part of Suntory's production network, contributing to the company's overall output of beverages consumed domestically in France.

The closure is set to take place by the end of 2026, with production gradually shifting to the Donnery plant, as well as reallocations to other facilities in Meyzieu and Châteauneuf-de-Gadagne.

Alexis Daems, CEO of Suntory Beverage & Food France, highlighted the necessity of this move: “The decision to close La Courneuve reflects the need to resize our industrial network to better serve our customers and ensure sustainable development in a market that has seen declining sales since 2022”.

The company has been grappling with significant challenges, including inflation and increased taxation on sugary drinks, which have adversely impacted consumer purchasing power and overall sales.

The transition will affect approximately 56 jobs, with management committed to supporting employees through this process. Daems assured that the company will prioritise employee mobility and development opportunities, adding: “Throughout the project, our priority will be to support every employee affected, particularly our teams in La Courneuve”.

The restructuring plan is currently subject to a consultation process with employee representatives, with a focus on facilitating a smooth transition for those impacted.

The company aims to implement the changes over a 15-month period, allowing for adequate support and dialogue with stakeholders.

Suntory Beverage & Food France produces a range of popular beverages, including Orangina and Schweppes, with 97% of its products consumed in France manufactured domestically.