November 20, 2012
VION to focus on Germany and Netherlands operations
VION Food Group will be returning to its main markets as it casts its attention on operations in the Netherlands and Germany.
The new strategy means that VION will be divesting all its food activities in the UK and a number of non-core activities, including Banner Pharmacaps (divestment announced on 29 October 2012) and Oerlemans Foods (frozen vegetable and potato products). The decision to create a smaller VION, with increased strategic and geographic focus, follows the strategic reorientation implemented earlier this year, the results of which were announced on June 2012. This new course is also aligned with the announcement made on September 2012 that the company would be implementing the strategy.
VION's board of directors and main shareholder have concluded that the new course is essential, given the failure of the previous acquisition and growth strategy in Food, to deliver the expected operational synergies and financial performance. Combined with the poor market conditions in the European pork sector, this has forced the company to take some difficult but necessary decisions.
VION's CEO and executive board chairman, Dirk Kloosterboer, said: "This is a particularly difficult day for everyone at VION. The decisions we have made have not been easy ones, but they are essential. We are returning VION Food to its core pork and beef activities in the Netherlands and Germany, whilst VION Ingredients will continue to develop globally. The divestments, of which our British food activities constitute by far the largest part, will be implemented carefully. These are steps in a challenging programme to get our food activities back to the desired returns, but I am fully confident that, with the hard work and support of all our people, we will once again ensure VION's strong position in our chosen markets."
Given limited resources, VION has decided to focus entirely on its redefined core activities.
VION is now focused on a detailed process to sell its pork, red meat and poultry UK businesses. The UK activities are split into a number of sub-markets, the principal ones being pork, beef, lamb and poultry.
