A restructure at the Dutch multinational dairy co-operative Royal FrieslandCampina is designed to help the business respond to market developments more decisively and to encourage faster innovation in line with its strategic priorities.
The business will be organised into four global business groups – Consumer Dairy, Specialised Nutrition, Ingredients and Basic Dairy – from January 2018. The company says the less complex structure will enable operational and commercial improvements to generate more value for its dairy farmer members.
The new Consumer Dairy business group will be composed from the current consumer-driven business groups FrieslandCampina Europe, Middle East & Africa; FrieslandCampina Asia; and the consumer-focused activities of FrieslandCampina Cheese, Butter & Milkpowder. The new Specialised Nutrition business group will focus on speciality food, such as infant nutrition, sports nutrition and nutrition for elderly people in view of the increasing importance of these high-value markets. Two business groups will target the business to business market: Ingredients with the production and sales of dairy ingredients and Basic Dairy which will concentrate on the production of basic products such as cheese, butter and milk powder, and their sale to the food industry and retail. Basic Dairy will also cover milk processing.
“In order to remain successful, we have to respond quicker to changes in consumer demand, customer needs and social developments,” notes Royal FrieslandCampina chief executive Roelof Joosten. “We can accomplish this by granting the business groups more independence and accelerating the decision-making process. With the simplification of the organisation and targeted innovations we invest in further strengthening our brands in the areas of speciality food, milk and other dairy-based beverages, yoghurt, quark, cheese and ingredients.”