Swiss dairy group Emmi is to remove a number of brands from its portfolio and streamline its supply chain in a bid to cut costs.
Go deeper with GlobalData
The company, which has warned 2007 profits will miss its forecasts despite rising sales, is aiming to reduce costs by CHF20m (US$18.2m).
In the last 12 months, Emmi has seen margins suffer amid rising commodity costs, particularly the rising cost of milk powder.
An Emmi spokesperson told just-food today (5 February) that the company had earmarked savings in sales and marketing, its supply chain and from cutting the number of products it sells.
“We would like to reduce the complexity of our product range,” the spokesperson said. “We’re a big company and we have grown through acquisitions so we have a vast product range.”
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataThe cuts from Emmi’s portfolio will largely come from the products it sells domestically and will focus on reducing the number of packaging sizes it offers in a certain range.
The spokesperson said that the company would look to generate additional savings in logistics and sales and marketing.
The cuts in logistics could lead to the loss of 20 jobs, she added.
Yesterday (4 February), Emmi posted a 7.1% rise in net sales to CHF2.5bn thanks, the company said, to its Swiss venture Mittelland Molkerei and recent Italian acquisition Trentinalatte.
