Saputo is creating a dedicated ingredients division on the back of an agreement to sell its UK dairy business to French peer Lactalis.
In a statement yesterday (23 September), the Toronto-listed branded and private-label dairy producer described the move as an “evolution of its organisational structure, designed to strengthen the company’s ability to execute its strategic priorities”.
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The Canadian group said the new division would focus on expanding its “higher-value” dairy ingredients and “high-protein” products.
Steve Douglas has been appointed president and chief operating officer for the ingredients unit, with responsibility for the division’s commercial, operational, innovation and growth initiatives.
Douglas will remain president and COO of Saputo’s UK Dairy Division until completion of its previously announced sale to French dairy giant Lactalis.
Lactalis agreed in August to acquire the business for around £988m ($1.33bn), with the transaction expected to close by the end of the first quarter next year, subject to regulatory approval.
Saputo said the new division would help “accelerate innovation, strengthen commercial focus, and expand opportunities across global markets”.
Saputo CEO Carl Colizza said: “As Saputo continues to evolve its portfolio and invest in growth opportunities, it is important that our organisational structure evolves alongside our business.
“These changes are intended to increase organizational focus, strengthen accountability, and improve execution across key strategic priorities.”
Just Food has asked Saputo for further details on those priorities, whether ingredients will be reported separately financially, its expansion plans and target markets, and what the company defines as higher-value ingredients.
Saputo has also created a chief enterprise transformation officer role, which will be held by Haig Poutchigian, who joined the company in 2016.
Poutchigian will oversee the integration of the group’s business administration, operational finance and information technology teams into a single enterprise services model, Saputo said.
Dave Paradis, who has been at the company for more than two decades, will become president and COO of Saputo’s Canadian division.
According to the company, he will focus on commercial execution, customer partnerships and operational performance.
Saputo said the changes support its existing priorities, including “expanding value-added dairy and high-protein ingredients capabilities”, “leveraging digital and AI-enabled technologies” and “simplifying processes and improving execution”.
Just Food has also sought additional information on how Saputo plans to apply digital and AI technologies, and how scalability will be addressed across the business.
