FrieslandCampina eyes growth in Southwest Europe with new MD appointment

A long-serving employee at the Dutch dairy co-operative, Müller became MD of FrieslandCampina Iberia, Italy and France after nine years in the co-op’s marketing and sales departments. She has worked in both the B2C and the B2B side of the business, most recently as commercial director, QSR and coffee & tea, at FrieslandCampina Professional.

Prior to joining the co-op, Müller worked at Mondelez and PepsiCo in Brazil as well as at Reckitt-Benckiser in the UK. She has a degree in Business Administration from the IE Business School and London Business School as well as 19 years of experience in marketing and business administration.

In her new role at FrieslandCampina, Müller will be tasked with driving growth and strengthening FrieslandCampina’s position in Southwest Europe – a region that has become increasingly important to the co-op’s business model.

“Over the last decade, Iberia, Italy and France have become increasingly important to FrieslandCampina, transitioning from developing markets to growth engines for several of our businesses,” Müller told us. “Our challenge remains to gain relevance and critical mass in these markets, which are farther from our home base, both commercially and in terms of talent attraction.”

Driving growth across the board is particularly important this year following a ‘difficult’ 2023 in which disappointing operating profit and a number of one-off costs resulted in the co-op closing the year with a net loss of €149m, a decrease of 151% over the previous year.

This growth plan has in part been enacted through a new business group structure. Announced in January 2024, FrieslandCampina split some of its focus in Europe under the stand-alone ‘Europe’ division but also the 'Retail and Americas' group, which focuses on 'strategic partnerships with retailers and discounters' in markets including France, Italy and Spain. Improving efficiency and continuing to invest in sustainable farming and operations, meanwhile, remains a priority for the organization.

“As FrieslandCampina Iberia, we leverage the abundant know-how and tools of our company to contribute to a better planet,” Muller said. “Providing good nutrition to the world and ensuring a good living for our farmers, both now and for future generations, is at the heart of what we do.

“Our focus in Southwest Europe is based on three pillars: contributing to a climate-neutral future by engaging with our customers to reduce over a third of our greenhouse gas emissions by 2030; improving packaging, with 95% of our packaging being recyclable or reusable by 2030; and supporting a better livelihood for our farmers, as we market approximately 7% of FrieslandCampina’s total milk intake.”

Speaking of growing the co-op’s product offering in the region, FrieslandCampina's product portfolio is ‘already diverse’, she told us, ‘with strong positions in cheese, cream, butter, and even a meat alternatives’.

“Looking ahead, I see the co-op continuing to evolve by deepening its focus on sustainability, nutrition, and innovation,” the regional managing director said. “The company’s commitment to a climate-neutral future will likely drive innovations in packaging and production processes as well, creating an even more resilient and relevant portfolio.

“Moreover, FrieslandCampina can leverage its expertise in both B2C and B2B markets to create solutions that cater to emerging trends such as personalised nutrition and functional foods, while continuing to support its farmers with sustainable practices.”

In more recent years, focus on ingredient innovation has proved to be winning strategy for the co-op: FrieslandCampina’s Specialized Nutrition and Ingredients businesses both grew in terms of operating profit in 2023 (Specialized Nutrition by 3.5% over 2022 through sales of premium infant nutrition products in China; while Ingredients profits grew nearly 20% thanks to strong sales of ingredients for adult nutrition products).

At the same time, profits from Food & Beverage - which comprises consumer and professional solutions - dipped nearly 94% over the previous year on the back of volatile dairy commodity prices, reduced consumer spending and a decline in purchasing in the professional segment. Trading of dairy commodities was also negatively affected, with profits at -€155m in 2023 from +€99m in 2022.

Now, Müller thinks there's scope to explore opportunities in the professional segment in Southwest Europe. “The region is a culinary cradle of the world, known for its fabulous gastronomic traditions and rich variety of traditional products," she told us. "Depending on the product category, we play different roles.

“For example, we offer technical butters for croissant production, a very traditional product. When it comes to cheese, there is a vast universe of local types and varieties, which we fully appreciate. We also believe that our products have a role to play in certain occasions and applications.”

Asked what have been the biggest shifts across B2B and B2C having worked across both spaces during her time at FrieslandCampina, Müller acknowledged these are trying times for business. “We have experienced significant shifts in both areas, especially after the COVID pandemic,” the MD said. “The world has become more complex, unpredictable, and volatile. As a company, we are adjusting to build greater resilience and responsiveness to rapidly changing market conditions.”

“In my new role, my priority is connecting with people - both colleagues and customers,” she concluded. “I am doing a lot of listening, visiting markets, and learning about our strengths and areas for improvement. Based on what I learn, my team and I will review and refine our strategy. I believe we have the opportunity to sharpen our focus, putting dedicated effort behind initiatives that can truly make a difference for our customers, consumers, farmers, and the planet.”

What are FrieslandCampina’s climate targets?

The Dutch multinational is aiming to decrease scope 1 & 2 emissions (i.e. operational emissions, which the co-op defines as emissions from production and transporting milk) by 63%; scope 3 emissions (linked to milk production and raw materials purchasing) by 37.5%. This is for the period 2015 - 2030.

Only the co-op’s scope 1 & 2 targets have been validated by the SBTi​ as contributing to limiting global warming to 1.5°C.

By 2023, the co-op decreased scope 1 & 2 emissions by 39%; scope 3 emissions – by 34.5%.