As reported by Just Food, the company is aiming to increase biscuit production, which is the “core product of the site.
The deal will see the company add new machines for measuring biscuit cream, which, it said will improve the dosing of the ingredients and reduce waste.
Dr. Schär will also add robotics to improve product composition and packaging as well as hire 15 new production staff.
Matthias Müller-Thederan, the managing director of Dr Schär’s operations in Germany assured that the investment not only allows them to increase and optimize production capacity but also represents an investment in the production workforce.
On the one hand, he added, “it offers us the opportunity to continue our path of education, training, and professional growth for all those who already work with us to go further.”
Headquartered in Burgstall, Italy, the gluten-free food maker has 18 sites in 11 countries, including Spain, the UK, and the US.
The Company provides gluten-free breads, flour, snacks, cereals, pasta, biscuits, desserts, frozen convenience foods, and other dietary, as well as nutritional products.
In March this year, the company invested EUR6.8m (US$7.2m) to add a new production line at its facility in Alagón, Spain as part of its goal to increase the capacity to provide food for people suffering from celiac disease and those with other gluten sensitivities.
The investment comes at a time when health-conscious consumers are showing an increased interest in gluten-free products as a part of a broader healthy eating regime.
With the rise in demand for gluten-free food and drinks, manufacturers are exploring various gluten alternatives, including flour derived from nuts, seeds, beans, fruits, and vegetables.
Fortune Business Insight reports that the global gluten-free food market is projected to grow from $5.72 billion in 2021 to $9.99 billion in 2028 at a CAGR of 8.29% in the forecast period, 2021-2028.
According to the company, installing the biscuit production facility will increase efficiency and “optimize” the working hours of production employees as well as position Dr. Schär to better take advantage of opportunities arising from the gluten-free food market.
Dr. Schär, which generated revenue last year of €480m (US$ 528M) across the group, has more than 1,600 employees.