Germany upgraded as independent business group

Germany is now being cemented as a key core market in Arla Foods in line with the UK, Sweden and Denmark: Executive Vice President Tim Ørting Jørgensen will head a new business group based in Düsseldorf and is tasked with making Arla one of Germany’s leading dairy companies.

Building a core market in Germany is one of the most important elements of Arla’s Strategy 2015. These organisational adjustments are therefore a strategic milestone, and also a strong signal to farmers, customers and competitors in Germany that Arla is increasing both its pace and its presence in the German dairy industry. After the Hansa-Milch merger earlier this year and the recent acquisition of Allgäuland Käserien, Arla is now the seventh largest dairy company in Germany, and its goal is to be among the top three.

“We need a strong organisation that can spot and utilise every growth opportunity via organic growth, acquisitions or mergers. This organisation must also be able to ensure the sound integration of current and future business units. We are now laying the foundations for the German core market of the future. Our expectations are high, so I am very pleased that Tim Ørting Jørgensen has agreed to play the leading role,” says Arla’s CEO Peder Tuborgh.

Synergies between Germany and the Netherlands

Tim Ørting Jørgensen is thus leaving his current role as head of Consumer International. He will continue as Executive Vice President in Arla’s Executive Management Group, but now with responsibility for Consumer Germany & Netherlands. He will retain responsibility for the Netherlands, which is therefore separated from Consumer International.

“There are potential synergies between the two core markets, and it will be my job to identify them and use these opportunities across the board in terms of products, production, distribution and innovation. The countries will still be two separate business units, however, as their respective consumers, customers and business models are very different,” says Tim Ørting Jørgensen.

Day-to-day operations in the Netherlands will still be led by Senior Vice President Andrew Simpson, and the Dutch organisation will not otherwise be affected by the current organisational changes.

Organisation up and running

The new German organisation will be based in Düsseldorf and is to be up and running by January 1st 2012.

“In one year, Germany has grown from an Arla export market to a market with five dairies and expectations of higher growth. So we need to build up a stand-alone organisation that can handle supply chain, marketing, sales, finance, HR and strategy development for the whole of Germany,” says Tim Ørting Jørgensen.

The leadership of Consumer International is taken over by Finn S. Hansen, until now Senior Vice President of the Middle East and North Africa. He becomes Executive Vice President and part of Arla’s Executive Management Group, which will now consist of ten executives.

Besides his new role, Tim Ørting Jørgensen will continue to be responsible for the Chinese joint venture Arla Mengniu.