FrieslandCampina, the Dutch dairy cooperative, is attempting to simplify the organisation and make one of the largest companies in the sector more responsive to market trends.

The owner of Milner cheese and Yazoo milkshakes is to be re-organised into four global business groups: Consumer Dairy, Specialised Nutrition, Ingredients and Basic Dairy. 

The company suggests a less complex structure will enable it to more decisively respond to the market developments and to innovate better with respect to strategic priorities. 

It said the objective of the new structure is to further improve the company both operationally and commercially and so durably generate more value for the member dairy farmers. 

The new organisation will be operational as of 1 January.

The new FrieslandCampina Consumer Dairy business group will be composed of the current consumer-driven business groups FrieslandCampina Europe, Middle East & Africa, FrieslandCampina Asia and the consumer-focused activities of FrieslandCampina Cheese, Butter & Milkpowder. 

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By GlobalData

The new FrieslandCampina 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 for FrieslandCampina. 

The other two business groups will target the business-to-business market: FrieslandCampina Ingredients, with the production and sales of ingredients; and FrieslandCampina Basic Dairy with the production and sales of basic products, such as cheese, butter and milk powder to the food industry and retail. The latter is also responsible for optimising milk processing. 

FrieslandCampina said the changes would also lead to a reduction in the number of people on its executive board. CEO Roelof Joosten and CFO Hein Schumacher will be the two members on the board. Piet Hilarides and Bas van den Berg, who have sat on the board, are to leave FrieslandCampina as part of the reorganisation.

Joosten said: “In order to remain successful, we have to respond quicker to changes in consumer demand, customer needs and social developments. 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.”