Royal Wessanen Embarks on Economy Plan
Royal Wessanen nv, Amsterdam, the Netherlands, which focuses on organic foods and frozen snacks in t…Royal Wessanen nv, Amsterdam, the Netherlands, which focuses on organic foods and frozen snacks in the Benelux market, plans to streamline its European and frozen food activities. That will mean closing one plant, and layoffs elsewhere.
Among other changes, the Beckers and Favory frozen snack organizations will become one integrated company with the aim of strengthening its Benelux market positions, improving profitability and enabling it to better cope with the challenging environment. This integration will affect the marketing and sales, operations, finance and human resources departments. As part of the plan, the Favory snacks plant in Deurne will be closed in March.
As first announced in July, Wessanen has been assessing the company's structure and cost base on a more structural basis. After implementation during 2013, the planned transformation is expected to generate cost savings in the order of EUR 15 million per year from 2014 onwards. It will impact approximately 300 full time equivalents (FTE) in Europe. Consultation with the European and local works councils will start immediately. The one-off costs associated with its implementation are estimated to be EUR 24 million, of which EUR 15 million have a cash effect over the next twelve months.
"In the past period, we have spent a considerable amount of time assessing business opportunities and issues," said CEO Piet Hein Merckens. "We have also thoroughly looked at our structure and cost base with the aim to deliver more efficiently our strategic agenda and adapt to a changed environment. As a result, we are initiating a wide range of actions to increase focus, substantially reduce complexity and simplify and standardise processes. In addition, we are also addressing low-yielding and non-performing activities."
