Strategy development for a dairy cooperative.

Strategy development for a dairy cooperative with the focus on its business areas in fresh dairy, cheese and dry milk products 

 

Client:

  • Large dairy cooperative with several production sites and focus on fresh dairy, cheese and dry milk/whey products
  • Number of employees: approx. 1,000
  • Turnover: approx. 580 million €
  • Milk/whey processing: approx. 3 billion kg/year

 

Initial sutuation:

  • The dairy cooperative is one of the most important companies in the German dairy industry. A wide range of fresh dairy, cheese and dry products are produced at 9 production sites throughout Germany
  • Some time ago, the company entered an economic crisis and underwent restructuring, successfully completed this process incl. refinancing
  • In light of the changing regional and global demand for milk products and the increasing of competition, but also with the aim of strengthening and expanding its existing market position, the company has recognised the need to review its future strategic orientation
  • Against this backdrop, ARONIA Management Consulting GmbH was commissioned to provide the company with methodological and content-related support in the development of future strategic options

 

Actions taken:

  • Expansion of the niche competence in organic dry products by developing new products and expanding existing production capacities
  • Entry into the production of high-margin milk/whey ingredients with simultaneous entry into international sales markets
  • Export business expansion in dried milk/whey products and cheese
  • Increasing of profitability through product range and distribution expansion in the business with bulk consumers and ethnic products
  • Development of a marketing concept for brand strengthening in the fresh dairy and cheese

 

Results:

  • Achievement of market leadership in some areas of organic dry milk and whey products
  • Reduction of volatile commodity products
  • Expansion of margin-attractive business areas such as whey ingredients, organic products, bulk consumer products, regional brand and ethnic markets
  • Product range extension with high-margin products and simultaneous expansion into international customer markets
  • Reduction of dependence on domestic markets, risk diversification through internationalisation
  • Optimization of cost and production structures by closing unprofitable production sites and targeted investments in sustainable future-oriented factories
  • Strict project management for strategy implementation with clearly defined measures, deadlines, milestones and responsibilities