FrieslandCampina is reorganising its business in Europe's retail channel to become “simpler and more customer-centric”, CEO Jan Derck van Karnebeek said.

The changes affect business units with remits that have overlapped in Europe.  

The Dutch dairy cooperative plans to combine the elements of two units – Retail & Americas and Europe – that have both worked with customers in Europe’s retail market.

According to FrieslandCampina's annual report, the co-op's Europe business unit handles business in the Netherlands, Belgium and countries including Greece and the UK.

Meanwhile, the Retail & Americas unit supplies cheese and other, undisclosed products to retailers in Germany, France, Italy and Spain.

In a statement, van Karnebeek said bringing the two elements together would mean FrieslandCampina can "better serve customers, respond faster to market opportunities and make better use of our scale and expertise, while continuing to create value from member milk".

At the same time, the owner of the Dutch Lady brand intends to move its Americas operating company out of the Retail & Americas unit and into its Middle East, Pakistan & Africa business group.

The change would create a renamed Middle East, Pakistan, Africa & Americas unit.  

Overall, the moves would reduce the company’s business groups from seven to six.

Asked if the changes would lead to job cuts, a spokesperson said: “At this stage, it is too early to say whether this intended integration will have implications for jobs. The new combined organisational structure will be developed over the coming months and is expected to be presented in early October. We will share further updates as more information becomes available.” 

Under the new structure, the Europe business group will be led by current Europe president Dustin Woodward.  

The expanded Middle East, Pakistan, Africa & Americas group will be led by Tuncay Özgüner, who currently heads Retail & Americas. 

Ali Khan, current president of Middle East, Pakistan & Africa, will retire.