The chief executive of Campina is to leave the company after the Dutch dairy group decided to push for a merger with local rival Friesland Foods.
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Justin Sanders, who has spent over 15 years at the co-operative, will leave the company at the end of the year.
Campina admitted Sanders’ decision to leave was related to its plans to merge with Friesland Foods. “The merger will mark the start of a new era for the company, and it was therefore decided by those concerned that it would be wiser if Mr Sanders, who has set his stamp on Campina for the past 15 years, did not move to the new concern,” Campina said.
“Mr Sanders has therefore decided, in consultation with [Campina’s] supervisory board, to leave Campina now to give the merger the best chances of success.”
Campina chairman Kees Wantenaar said Sanders had made a “very important contribution” to the company’s position as “one of Europe’s leading dairy companies”.
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By GlobalDataHe added: “The supervisory board regrets the fact that it was not possible for Mr Sanders to continue in his role as CEO in the new company. However, the merger marks the start of a new era and Mr Sanders is more closely involved than anyone with Campina, a company he so emphatically put on the map.”
Sanders insisted he “fully supports” Campina’s merger with Friesland Foods. “I am proud that Campina is ready to take this next step as an equal partner,” he added.
Earlier today, Campina and Friesland Foods said “exploratory” talks over a merger were being held but said the management of both companies support the idea of merger.
“The purpose of the exploratory talks is to determine whether the multinational Friesland Campina will generate additional added-value for its member dairy farmers through, amongst others, milk price, and facilitate milk volume growth in line with the anticipated growth of the new company,” the dairy processors said.
Industry watchers have predicted consolidation in the dairy sector as commodity costs have soared this year.
In October, two of the UK’s leading dairy co-operatives, First Milk and Milk Link, announced they were looking to merge.
Friesland Foods and Campina said their proposed merger would create “one of the leading global dairy companies”. The combined turnover of two companies stands at EUR8.3bn (US$12bn).
