Arla UK has a new chief executive following a senior management restructure at the Danish parent co-operative. The new, smaller executive management team (EMT) is organised into two geographical areas - Europe and International.
Peter Giørtz-Carlsen, executive vice-president for the UK since 2014, will take on a new role as head of Europe. He is succeeded by Tomas Pietrangeli, the present head of the Danish market, from March 1st 2016.
Mr Pietrangeli, who joined Arla in 2014, has nearly 20 years of experience working in senior roles for global consumer brands in Europe, including Proctor & Gamble, Unibrew and Reckitt Benckiser.
“This strategic reorganisation will allow our UK business to become more agile and responsive to the dynamic nature of the market,” notes Mr Giørtz-Carlsen. “We have strengthened the UK business significantly in 2015 with the growth of our own label and branded volumes in all dairy categories, launched the Arla brand and driven cost efficiencies. We now need to take the next step which will be to structure our business to capture the full benefits of our global scale.”
Mr Pietrangeli adds: “As Arla’s largest market, the UK is a key part of our organisation with ambitious plans for the coming years. I’ll be focusing on championing our leadership role in the UK dairy industry as well as delivering the very best for our farmer owners, even during these challenging times.”
Arla group chief executive Peder Tuborgh says the business intends to increase its organic revenue growth from the 2% of recent years to at least 4% by 2020. The new management structure will help create a simpler, more agile organisation and drive efficiencies through faster decision-making and execution with less duplication across countries. He envisages the process will see up to 500 roles becoming redundant across its markets and functions.
“Arla has grown its business significantly in recent years both organically and through mergers,” says Mr Tuborgh.” However, more milk is being produced globally, Europe is experiencing pressure on prices and very little growth, which means competition, is fierce.
“In addition, consumer needs are becoming more diverse and our customers expect increasing levels of service. Therefore, we need to be more agile and cost efficient to remain competitive. In order to remain at the very top of their preferred partners list it will be necessary to change the ways we work.”