Given the choice between closing an older facility or retrofitting it, closing is the more economic decision. As well, Charlebois sees the market going in multiple directions, including the consumer trend towards non-dairy alternatives, especially with companies like Starbucks leading the way by encouraging consumers to consider non-dairy options.
“Saputo’s structure needs to change. It’s similar to Maple Leaf Foods in recent months. They completely changed the structure of the company in order to adapt to consumer trends,” he said.
P.E.I. isn’t immune from those global trends toward non-dairy alternatives, he added.
Maynard doesn’t see these moves by Saputo as a sign for concern because the majority of global consumers are still buying dairy.
“People’s diets shift. We’re seeing a decrease in the consumption (of) fluid milk, but we’re seeing increases in the consumption of cheese within the Canadian market and within the world market also. Dairy is still a very sound source of nutrients, proteins, fat and energy,” he said.
