Through its Route2020 strategy, FrieslandCampina will move away from commodities and towards more value-added products, expanding its interests in dairy-based beverages, branded cheeses and infant and toddler nutrition.
Coupled with a strong focus on cost management, the strategy is intended to lead to improved profits, delivering annual volume sales growth of 5%.
Innovation based on the natural qualities of milk would be key to its future sales growth, said CEO Cees 't Hart. "We firmly believe we can do even more with milk and use even more of the nutrients it contains."
Friesland also hinted in its announcement that it may seek to fuel growth through further acquisitions. "FrieslandCampina's strategy includes the possibility of acquisitions, while there are no plans at this stage to dispose of activities," the company stated. The announcement comes as it embarks on a £4.5m campaign to grow its Yazoo milkshake brand by £10m to £95m in the UK this year. As part of the 2010 campaign, Yazoo is sponsoring Loaded's LAFTAs comedy awards. Activity with the lads mag will comprise a UK tour to find a comedy star, followed by an awards event in November in support of the brand's drive to tap the young male demographic. "We know that young men are a key Yazoo consumer, and we plan to drive the category further this year by marketing directly to this audience," said Marielle de Jong, marketing director for FrieslandCampina brands in the UK.
Since the merger of Friesland Foods and Campina in 2008, the Dutch co-op has focused on integrating the two organisations and has streamlined various parts of its chain.
FrieslandCampina operates plants in 24 countries and markets its products in more than 100 countries. It is the fourth-largest dairy company globally by sales value with an 8.01bn dairy turnover in 2009 [Rabobank International].