Danish Crown is bringing together seven business units and increasing its focus on Europe. The group wants to add more value to meat supplied by its owners. Manufacturing, sales, and product development will come under a single leadership structure. The new structure is also intended to help reduce costs.
Danish Crown informed its employees of the plans on October 2. Sokołów, Beef, Industry, Foods, KLS, UK, and ESS-FOOD will form a single organization. DAT-Schaub will remain an independent business unit within the group. This unit markets and sells byproducts.
Danish Crown had already brought its central functions together in June. According to CEO Niels Ulrich Duedahl, this strategy calls for a different organizational structure.
Danish Crown currently adds value to around 25% of the meat supplied by its owners. The company aims to increase this share to 50% by the end of 2030. The group is focusing on six selected core markets. The company is placing less emphasis on its role as a global player.
Danish Crown wants to significantly reduce its number of brands. The brand strategy will center on fewer, stronger brands. The group aims to become the cost leader in the European market. Previously announced cost-cutting measures are intended to support this goal, alongside the new structure.
Danish Crown will work out the details of the new organization over the coming months. The company expects it to be fully operational within six months. The current managing director roles for individual business units will be phased out. Instead, Danish Crown is expanding its international management team. Decision-making and accountability across countries and business units will be consolidated within this team.
Source: Danish Crown