Arla Foods gets new organizational structure

14/09/05 Peder Tuborgh, Arla Foods’ Managing Director, presents the Group’s new organisational structure.

As consumers and customers develop and change, Arla Foods’ organisational structure must be able to change accordingly. Consequently, Arla Foods’ activities will be centred on four major business areas, Consumer Nordic, Consumer International, Consumer UK and Global Ingredients. A new corporate centre to integrate inter-group functions will be also established.

The four business areas will strengthen Arla’s positions in the Nordic area and in international markets and thus assure its milk producers of a tenable milk price, now and in the future. The four business areas will be responsible for everything from production to sales and marketing for their respective area.

Consumer International
Arla’s sales of cheese and butter outside the three home markets of Denmark, Sweden and the UK will be gathered under Consumer International. The Production Division and, consequently, Arla’s production of cheese and butter at the Swedish and Danish plants will also come under Consumer International with Mikael Sternberg Christiansen, Director, Europe Division, as its head.
Consumer International will employ a staff of 5,900 and have an overall turnover of DKK 8.1 billion.

Consumer Nordic
The home markets, Denmark and Sweden, as well as Finland and Norway, will be gathered under Consumer Nordic. The production of fresh products will also come under Consumer Nordic. Group Director Hans-Åke Hammarström will become head of Consumer Nordic with overall responsibility for the Nordic market. Anders Svensson has been appointed Hans-Åke Hammarström’s successor as Executive Director of the Sweden Division. Tim Ørting Jørgensen takes up the position of Executive Director in Denmark. Consumer Nordic will have a staff of 4,500 and a total turnover of DKK 16.2 billion.

Global Ingredients
Arla’s milk protein and whey protein activities come under Global Ingredients. Production of powder and protein products is the responsibility of Global Ingredients. Peter Lauritzen, Director, Arla Foods Ingredients remains responsible for the business area, Global Ingredients. Turnover for milk powder is DKK 4.7 billion and the area employs a staff of 1,600.

Consumer UK
Consumer UK’s activities will incorporate Arla Foods UK plc, Arla Foods’ partnership with Fonterra with regard to butter and blends and export activities from Sweden and Denmark to the UK. Consumer UK will have a turnover of DKK 15 billion and employ a staff of 6,300. UK-based Group Director Kim Nielsen will assume overall responsibility for Consumer UK.

Corporate Centre
Corporate Centre, which will handle global, inter-group issues, will be divided into four areas:
Corporate Commerce: will comprise Group marketing, inter-Group research and development. This will be headed up by Andreas Lundby.

Corporate Supply Chain will comprise milk supply, technology, global purchasing and investment. This will be headed up by Povl Krogsgaard.

Corporate Finance & IT will manage matters relating to finance, economy, IT and legal issues. This will be headed up by Jørn Wendel Andersen.

Corporate Affairs will comprise owner relations, Group HR, communication and Group development. This will be headed up by Peder Tuborgh.