FrieslandCampina, the Dutch dairy group that owns brands such as Yazoo and Chocomel, has unveiled its new ‘Expedition 2030’ strategy that aims to improve its profitability and drive future growth. The strategy includes the company looking to save between €400m and €500m a year from 2026.
FrieslandCampina stated that it was looking to reduce costs across the entire company, with the main focus on its support functions. This is expected to result in restructuring and job losses, but existing production sites won’t be closed.
The group noted that part of the annual savings will be needed to offset inflation. The remaining margin expansion will be equally divided between investing in growth and increasing the company’s net profit.
Jan Derck van Karnebeek, CEO of FrieslandCampina, commented: “Our goal is clear: produce top-quality products from our members’ milk and by doing so generate maximum value for them. Income that our members need to continue investing in the sustainable future of their farms. That is why it is so important that we structurally improve our business performance.
“Our sharpened strategy with a focus for each business group on specific customers, products, brands and markets will significantly improve the way we work and compete. Combined with a competitive supply chain and lower overhead costs, I am convinced that Expedition 2030 will strengthen our position as a leading, innovative and sustainable player in the dairy industry. This is important for FrieslandCampina to remain attractive to its member dairy farmers, employees and customers, now and in the future.”
The company stated that intended cost savings will be further detailed in the coming months, with it announcing the organisational implications and associated one-off restructuring costs in mid-December.
NAM Implications:
- A pointer for others…
