November 30, 2020

FrieslandCampina Germany accelerates strategy to focus more on strong brands

FrieslandCampina Germany is accelerating the transformation it had launched two years ago, focusing even more on its strong brands and scaling back the production of unprofitable products.

As a result, cost savings are planned which will affect approximately 195 employees at the production sites in Heilbronn and Cologne, Germany. At the same time, the company will also invest in these dairy plants.

Due to the impact of COVID-19, FrieslandCampina has recently evaluated its global Our Purpose, Our Plan strategy which was initiated in 2018.

On November 10, the company announced that its current strategy has only grown in relevance, but that its implementation needs acceleration and strong execution, intensifying the focus on growth categories while structurally reducing costs. In Germany, this resulted in FrieslandCampina Germany accelerating the implementation of its business strategy.

FrieslandCampina is strongly committed to the German market and intends to further invest in the market to improve the company's performance. "Germany is an important, strategic home market for FrieslandCampina. This year, we have achieved significant revenue growth of 7% with our core brands Landliebe, Chocomel, Valess, Tuffi and Holland Master. This is the result of the commercial strategy that we successfully launched two years ago, and that we are now going to accelerate," said Jan Kruise, managing director of FrieslandCampina.

As part of efforts to reduce costs, a reduction of full-time jobs at the production sites in Heilbronn and Cologne is planned. Works councils have been informed about this decision, and FrieslandCampina will support affected employees in their search for suitable new employment.

"We do not take such steps lightly," said Kruise. "…but the accelerated implementation of our strategy is necessary in the current situation to tap into new growth potential and to achieve sustainable growth in the market."

- FrieslandCampina