23 May, 2008 - Arla streamlines its organisation for the international consumer markets. The ambition is to come closer to consumers and customers. At the same time Arla focuses on eight markets including the Middle East.
The updated strategy for the international markets outside Scandinavia and United Kingdom focuses directly on increasing sales. As a consequence colleagues are situated closer to the eight markets in focus: Germany, Poland, Russia, Middle East, United States, Canada, Spain and Greece. Above all the organisation in the Middle East is strengthened by placing management in Dubai.
“Our ambition is to double turnover and grow through increased market shares and acquisitions and by focusing on five product categories in eight selected markets,” Tim Ørting Jørgensen comments. He is executive Director and in cahrge of the international business group.
The changes do not affect production but it does affect Arla Foods’ Copenhagen office when more activities are moved to the local markets. 35 out of 70 colleagues will be loosing their jobs.
According to Tim Ørting Jørgensen as much effort as possible will be put into helping these colleagues.
In the middle of the second consumer boycott in the Middle East, Arla Foods is now strengthening its focus on its Middle Eastern operations. Under Director Finn S. Hansen, a new and experienced team will move closer to the markets in order to integrate the five subsidiaries and joint ventures, create growth and steer the region through the turbulent period since the first cartoon crisis in 2006.
“We believe in a profitable future in the Middle East where we have strong quality brands for which consumers are willing to pay a premium,” says Finn S. Hansen.
“But we must also accept that the Middle East is no longer the same stable market as it once was. This is why we’re adjusting our business model to face up to any future fluctuations.
Simplification and focus are the key words for the new strategic focus in the region.
“The right customers will be prioritised, the distribution network will be simplified and many other initiatives will be set in motion as part of the adjustment of the business model,” Finn S. Hansen explains.