FDBusiness.com

Royal FrieslandCampina intends to simplify its organizational structure into four to be set up global business groups – Consumer Dairy, Specialised Nutrition, Ingredients and Basic Dairy. A less complex structure will enable FrieslandCampina to more decisively respond to the market developments and to innovate better with respect to strategic priorities. The objective of the new structure is to further improve the company both operationally and commercially and so durably generate more value for the member dairy farmers. The new organisation will be operational as of 1 January 2018.

The new FrieslandCampina Consumer Dairy business group will be composed from 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 Specialised Nutrition business group will focus on speciality 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 optimising the milk processing.

Roelof Joosten.

Roelof Joosten, CEO of Royal FrieslandCampina, comments: ‘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 quicker 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 organisation and targeted innovations we invest in further strengthening our brands in the areas of speciality food, milk and other dairy-based beverages, yoghurt, quark, cheese and ingredients.’

Executive Leadership Team

The restructuring of the organisation 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.

As of 1 January 2018, the Executive Leadership Team will consist of, amongst others:

* Chief Executive Officer – Roelof Joosten

* Chief Financial Officer – Hein Schumacher

* President Consumer Dairy – Roel van Neerbos

* President Specialised Nutrition – Berndt Kodden

* President Ingredients – Kathy Fortmann

* President Basic Dairy – Hans Meeuwis

* President FrieslandCampina China – Rahul Colaco.

Two members of the present Executive Board – 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 until that time.

The Central Works Council has been asked for advice with respect to the proposed changes.