August 13, 2020

Saputo merges US divisions into single dairy division

Canada-based Saputo has merged its two US divisions, its cheese division and dairy foods division, into one single dairy division to enable a more agile US platform, FoodBev Media reported.

Saputo says the new structure will allow its USS platform to be aligned under a common strategy and to be in a position to more efficiently serve its markets as consumer expectations are rapidly changing.

The merger is also expected to reveal synergies in all areas of the company's business and operations.

The announcement was made in Saputo's first quarter financialreport in which recorded revenues of CAD 3.39 billion (US$2.55 billion) representing a decline of 7.6%. The company said a shift in consumer demand due to the COVID-19 pandemic had impacted all of its geographical sectors.

Overall sales volumes in its retail segment increased, while in its foodservice and industrial market segments they decreased. In Saputo's US sector, which reported revenues of CAD 1.42 billion (US$1.07 billion), lower sales volumes impacted efficiencies and the absorption of fixed costs.

Through the merger, Saputo targets to continue furthering opportunities derived from the combination of all its operations in Australia under a single platform and to leverage the wide portfolio of brands gained through the acquisition of Lion Dairy & Drinks' specialty cheese business.

Saputo's business is geographically divided into the following sectors: Canada, USA, International and Europe.