Danish Crown, a prominent player in the meat industry, has recently restructured its core operations, establishing three distinct business units to enhance efficiency and effectiveness.
The co-operative has strategically divided its Danish Crown Business Unit into three new entities: Danish Crown Industry, Danish Crown Foods, and Danish Crown UK. This structural change aims to sharpen focus on value creation and to improve competitiveness in the pig market.
In a statement issued on Friday, April 4, the company’s leadership emphasized the need for a dedicated approach to value creation. CEO Niels Duedahl, who took over the role in September from former CEO Jais Valeur, noted, “We must ensure a sharp focus on value creation.”
Duedahl further articulated that each of the three new units must generate profits that benefit their respective owners. This restructuring arises after a thorough analysis showed that the previous merger of the Pork and Foods divisions in 2021 was not yielding the anticipated results.
“Instead of continuing to spend resources on a complex integration, we choose to make a division,” Duedahl stated, emphasizing the need for operational clarity.
The newly established Danish Crown Industry will manage pig slaughterhouses and will cater to industrial customers. This division is projected to employ approximately 5,200 staff while generating an impressive turnover of around DKr17 billion (approximately $2.5 billion).
Meanwhile, Danish Crown Foods will focus on the production and sales of both fresh and processed products for retail and foodservice customers, employing around 3,000 individuals with a turnover estimated at DKr13 billion.
Additionally, Danish Crown UK will operate as an independent entity, comprising about 1,000 employees and generating DKr4 billion in turnover. The company, known for its Tulip brand, believes that this division can be strengthened through dedicated local management and streamlined operations at its regional production sites.
Each of the three business units will function under distinct leadership and will undergo independent performance evaluations. During the transitional phase, Duedahl will act as the interim CEO for all three divisions while the organization searches for permanent managing directors.
Duedahl is optimistic that this new structure will provide each business unit with sharper focus, enhanced management capability, and a clearer understanding of how to achieve profit. Despite the internal restructuring, the company confirmed that, for accounting and external communication purposes, all divisions will continue to be referred to collectively as Danish Crown.
As it stands, the Danish Crown Group now encompasses eight business units: Danish Crown Industry, Danish Crown Foods, Danish Crown Beef, Danish Crown UK, DAT-Schaub, ESS-FOOD, KLS, and Sokolow.
In addition to these developments, the group announced in February that it would cease operations at its processed meat factory in Pinghu, China. This facility, which opened in 2019 and is situated near Shanghai, was put up for sale earlier this year in January.
