Now known as the dairy division, Saputo said the new structure will allow its USA platform to be aligned under a common strategy and to be in a position to more efficiently serve its markets as consumer expectations are rapidly changing.
According to Saputo, the merger is also expected to reveal synergies in all facets of the business and operations.
The announcement was made within Saputo’s first quarter financial results report in which it recorded revenues of CAD 3.39 billion ($2.55 billion) representing a decline of 7.6%. The Canadian dairy company said a shift in consumer demand due to Covid-19 pandemic had impacted all of its sectors.
Overall sales volumes in its retail segment increased, while in its foodservice and industrial market segments they decreased. In Saputo’s USA sector, which reported revenues of CAD 1.42 billion ($1.07 billion), lower sales volumes reportedly affected efficiencies and the absorption of fixed costs.
Through the merger, Saputo aims to continue furthering opportunities derived from the combination of all its operations in Australia under a single platform and to leverage the vast portfolio of brands gained through the acquisition of Lion Dairy & Drinks’ specialty cheese business.
To support the new organisational structure, the two leadership teams were combined into one management team led by Carl Colizza, who has been named president and COO of the unified division.
Colizza, who had been leading the dairy foods division (USA) on an interim basis since April, will take up this new role in addition to his current positions as president and COO of Saputo’s North America sector.
Saputo’s business is geographically split into the following sectors: Canada, USA, International and Europe.
