Some might say playing to your strengths is easy – but in a price-sensitive consumer environment where weight management is eroding margins and geopolitical shocks shake up supply chains, sustaining momentum in the snacking world is easier said than done.
Just over a month ago, General Mills reduced its sales outlook over ‘weak consumer sentiment, heightened uncertainty and significant volatility’, with snacks among the worst-hit categories.
And in recent years, Mars Inc. has generated more than half (around $30bn) of its revenue from pet care rather than snacking (around $19bn) – though its Kellanova acquisition is expected to tip the scales in snacks’ favour, if it does deliver the expected $36bn in combined annual revenue.
On that backdrop, French multinational Bel Group has quietly delivered sustained growth by sticking to its guns: innovating in dairy, fruit, and plant-based alternatives that sit within the healthy snacks segment.
And healthy snacking has serious growth runway: the sector is touted to expand at mid to high single-digit CAGR in the next decade, its value reaching around $145-$200bn in the next five to 10 years according to market analysts. Trends around smaller portions, satiety, flavour innovation, premium snacks, and permissible indulgence all support the category’s growth trajectory.
Winning in a volatile market
To make the most of the opportunity, Bel has strategically leaned on what fits or complements its portfolio instead of aggressively expanding into new niches.
The company launched a plant-based version of cheese spread Boursin, giving consumers a close-to-identical tasting alternative to the original (and capping that with a Great Taste 2025 award); introduced protein- and probiotics-packed Babybel portions in the US; and introduced a heap of limited-edition flavours across The Laughing Cow (Dill Pickle, Pumpkin Spice) and Babybel (spicy ‘Hellfire’) to draw in new and returning consumers.
Scaling capacity from Southeast Asia to the US
Behind the scenes, Bel has been strengthening its regional footprint in key markets through acquisitions and manufacturing expansion.
The company is doubling capacity at its Vietnam cheese factory. Vietnam is a key Asian market for Bel, where it commands a 70% share; but there’s another strategic imprint. An expanded facility will strengthen exports – serving the rest of Southeast Asia, China, Japan, and MEA.
Also in that region, Bel acquired a minority stake in Indonesia’s leading snacks and cheese maker, Garuda Food.
And in the US, the company is doubling the capacity of its Babybel-producing South Dakota factory, having recently expanded another cheese plant in Wisconsin. This is strategic future-proofing: the US is Bel’s largest global market, generating a third of group sales, or around $1.2bn per year.
Innovation built around familiar brands
On the product innovation side, Bel has been focused on making dairy alternatives more than ‘good enough’, telling us “the most important thing is to be able to put out tasty products with the right level of nutrients”. This strategy is baked into its portfolio objective to deliver 50% fruit and plant-based products and 50% dairy.
The routes to superior alt dairy range from leveraging precision fermentation to develop dairy-free casein to creating plant-based cheese through natural fermentation – and of course, using AI to figure out ingredient combinations and recipes.
There’s good reason for Bel to keep doing what it’s already doing while taking calculated moves that enhance its product lines strategically instead of radically.
Its core brands helped deliver volume growth for an eight consecutive quarter in March – that’s two years on the trot – resulting in consolidated sales of €3.83bn.
Net profit more than doubled at €107m versus €53m (+101.6%) with operating income (+32.1%), operating margin (6.1% vs 4.8%) and recurring operating income of (€260.2 million, up 6.7%) all supporting strong financial performance.
Bel is also spending more: the company invested €214m in strategic endeavours last year, including digitalisation. That’s €22m more year over year and supports a picture of a company that has comfortable but not abundant liquidity.
However, Bel’s bet is on improving efficiency, bolstering capacity and supporting innovation: all crucial ingredients for long-term growth. And given the French multi-national’s consistent results, that’s a strategy well-executed.
