Canadian dairy business Saputo is merging its two US operating units into a single division to provide a more “agile platform aligned under a common strategy”.

The cheese and the dairy foods divisions will become the Dairy Division (USA), Saputo said in its first-quarter results statement, which showed revenues fell 7.6% to CAD3.3bn (US$2.4bn) in the period ended 30 June.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

“The merger of its two USA divisions is expected to reveal synergies in all facets of the business and operations,” Saputo said, adding the merger will put the company “in a position to more efficiently serve its markets given consumer habits and customer expectations can evolve at a rapid pace”. 

Management teams have been combined, with Carl Colizza to head up the Dairy Division (USA) as president and also chief operating officer, and will hold those same positions for Saputo’s group business in North America. He had previously been in charge of the dairy foods division on an interim basis since April.

Elsewhere in the results, adjusted EBITDA climbed 2.4% to CAD366.5m, while net earnings were up 16.9% at CAD141.9m.

Saputo said: “The shift in consumer demand due to the Covid-19 pandemic impacted all the company’s sectors to varying degrees. Overall, sales volumes in the retail market segment increased, while foodservice and industrial market segments sales volumes decreased.”

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

However, the pandemic has not deterred Saputo from continuing to pursue acquisitions and to develop plant-based products.

“The company intends to seize future acquisition opportunities, which it believes constitute the right fit, with the objective of further strengthening its existing business,” it said. “Additionally, Saputo is committed to diversifying its product portfolio by pursuing plant-based opportunities, yet remains very bullish about dairy products, standing behind the belief that there are multiple opportunities for the company to continue to grow in the dairy space.”