FrieslandCampina simplifies organization, strengthens strategy in dairy ingredients

16 Aug 2017 --- Royal FrieslandCampina N.V. intends to simplify the organization into four global business groups: Consumer Dairy, Specialised Nutrition, Ingredients and Basic Dairy. A less complex structure will enable FrieslandCampina to more respond to the market developments more efficiently and to allow innovation with strategic priorities. The objective of the new structure is to further improve the company both operationally and commercially, generating more value for the member dairy farmers. The new organization will be operational as of 1 January 2018.

Roelof Joosten, CEO of Royal FrieslandCampina N.V. said: “Our route2020 strategy is focused on better nutrition for consumers and a good living for our farmers, now and for generations to come. In order to remain successful, we have to respond quickly 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 organization and targeted innovations we invest in further strengthening our brands in the areas of specialty food, milk and other dairy-based beverages, yogurt, quark, cheese and ingredients.”

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. The new FrieslandCampina Specialized Nutrition business group will focus on specialty 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. 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 optimizing the milk processing. 

Executive leadership team
The restructuring of the organization will also involve a change in the management of the company as of 1 January 2018 by reducing the executive board and by the establishment of an executive leadership team. The Executive Board will consist of the Chief Executive Officer and the Chief Financial Officer. The Executive Leadership Team will consist of two members of the Executive Board, the Presidents of the four newly to be set up business groups and the President of FrieslandCampina China. Additionally, a number of corporate functions, such as Human Resources, Research & Development and Corporate Supply Chain, will be included in the Executive Leadership Team.

Adjustments of FrieslandCampina management
Two members of the present Executive Board, being Piet Hilarides (Chief Operating Officer Consumer Products Asia) and Bas van den Berg (Chief Operating Officer Cheese, Butter & Milkpowder), will leave FrieslandCampina at the end of the year. However, they will remain responsible for their respective business groups up until December 31, 2017. 

Piet Hilarides has worked with the company for 23 years. He was a member of the Board of Management of Campina, among other positions. After the merger, he became a member of the FrieslandCampina Executive Board and Chief Operating Officer of the Cheese, Butter & Milkpowder business group. He has held the position of Chief Operating Officer of the Consumer Products Asia business group, established in Singapore, for the last three years. 

Bas van den Berg joined the company in 1994. He was Director of Campina Netherlands, among other positions. Following the merger, he was Managing Director of Daily Fresh Products, FrieslandCampina Malaysia, Singapore, Hong Kong and FrieslandCampina Benelux. In 2015, he became a member of the Executive Board and Chief Operating Officer of the Cheese, Butter & Milkpowder business group.

Frans Keurentjes, Chairman of the Supervisory Board commented: “On behalf of the Supervisory Board, I thank Piet Hilarides and Bas van den Berg for their dedication, commitment and outstanding contribution to the development of FrieslandCampina. Piet played an important role in actualizing the successful merger of FrieslandCampina. He was a member of the FrieslandCampina Executive Board from the start in 2009. Under his leadership, the activities falling under the Cheese, Butter & Milkpowder business group were successfully integrated and further expanded. He accomplished strong improvements of the results for the FrieslandCampina Asia business group.”

“Bas played an important role in profiling FrieslandCampina in the Benelux and in a number of Asian countries. As a member of the Executive Board responsible for Cheese, Butter & Milkpowder he has been successful in valorizing the increasing milk volume in the past years. I wish Piet and Bas all the best for the future,” he finalized.