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Dairy Crest Reorganisation to Save at Least £5 Million Annually

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Dairy Crest Reorganisation to Save at Least £5 Million Annually

Dairy Crest Reorganisation to Save at Least £5 Million Annually
February 20
12:56 2013
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UK dairy food group Dairy Crest, has announced a reorganisation, including board and other senior management changes. The sale of its stake in Yoplait Dairy Crest in 2009, the creation of a unified Dairies business and the disposal of its French Spreads subsidiary, St Hubert, last year have provided the opportunity for Dairy Crest to simplify the business further.

 As a result, from 1 April 2013, the start of its financial year, Dairy Crest will consolidate its organisation into a single structure focused on consumer driven growth with an integrated supply chain. This is consistent with its long-term strategy to build added value sales and drive efficiencies.

The new organization is intended to facilitate best practice, eliminate duplication and maintain Dairy Crest’s strong focus on profit delivery. Annual cost savings of at least £5 million are anticipated. After the reorganisation, Dairy Crest will continue to report its results for Cheese, Spreads and Dairies separately.

Board Changes

After nearly 10 years as Finance Director, Alastair Murray, is leaving to pursue other business interests. He will be succeeded by Tom Atherton who has been Dairy Crest’s Director of Financial Control for the past four years and has worked for Dairy Crest for seven years.

Martyn Wilks, Executive Managing Director, will remain on the board and will lead the demand side of the reorganised business with particular responsibility for driving growth.  From 23 May 2013, the three executive directors on the board of Dairy Crest Group will be Mark Allen, Martyn Wilks and Tom Atherton.

Refreshing Senior Management

The reorganisation will result in other changes to the senior management team. Toby Brinsmead, Managing Director, Dairies will leave the business in May 2013 and step down from the management board on 31 March 2013. 

Mike Barrington, who steps up to be Group Supply Chain Director from the Dairies business, will head the unified supply chain and will be responsible for providing an integrated, efficient service to customers. Mike Barrington joined Dairy Crest in 2011 having previously held senior supply chain roles with Kraft Foods and Cadbury Schweppes.

Mike Barrington and Robert Willock, who becomes Group HR Director, will join the management board from 1 April 2013. Arthur Reeves, Corporate Affairs Director, and Roger Robotham, Director of Corporate Development, will step down from the management board from this date but will remain with the business.

Mark Allen, Chief Executive of Dairy Crest, comments: “The reorganisation is right for Dairy Crest. It reflects our focus on consumers and customers as we continue the progress we have made in simplifying the business and becoming more efficient. It will reduce our annual overhead costs by at least £5 million. It has also provided an opportunity to refresh the senior management team. It allows the next generation of talented managers in the business to develop and attack the opportunities we have in front of us with renewed vigour.”

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