Danish Crown has taken an important step in the previously announced restructuring of the company. The organization is basically divided into three separate parts, each with its own management. This structure should ensure that all business units become profitable.
With the restructuring, Danish Crown wants to restore its profitability and make a profit in all areas. The company has struggled to remain competitive for years, partly due to the high salaries in its home country of Denmark. The restructuring follows an internal analysis, which showed that the merger in 2021 between the 'pork' and 'foods' divisions has yielded little for the company.
The Danish Crown Group now consists of eight business units: Danish Crown Industry, Danish Crown Foods, Danish Crown Beef, Danish Crown UK, DAT-Schaub, ESS-FOOD, KLS and Sokolow. The three main units will each have their own management and will be evaluated separately on their performance. During the transition phase, CEO Niels Duedahl will act as interim CEO of all three units until the permanent managing directors have been appointed.
New business units
The existing Danish Crown Business Unit has been split into Danish Crown Industry, Danish Crown Foods and Danish Crown UK. Danish Crown Industry will focus on pig slaughtering and sales to industrial customers. This division employs around 5.200 people and has a turnover of approximately DKK 17 billion (at current exchange rates: €2,28 billion). Danish Crown Foods will focus on the sale and production of fresh and processed products for retail and food service customers. This division employs around 3.000 people and has an annual turnover of approximately DKK 13 billion (€1,74 million).
Danish Crown UK will continue as an independent entity, with its own local management responsible for production and sales in the United Kingdom. The British division has around 1.000 employees and a turnover of 4 billion kroner (€540 million). According to Danish Crown, the company is best served by strong local management.