Smithfield Foods announced a strategic carve-out of its European operations, aiming to unlock distinct growth potential for both its North American and European divisions. The company and Morliny Foods, formerly known as Smithfield Europe, will now operate as separate entities under the WH Group umbrella.
"It's the right time to establish our North American and European operations as stand-alone businesses empowered to execute distinct strategies addressing different market environments and opportunities," said Shane Smith, President and Chief Executive Officer of Smithfield Foods. "In doing so, we provide our respective management teams with increased decision-making agility, optimizing the performance and prospects for each business."
According to a press release, the carve-out allows Smithfield Foods to concentrate on expanding its North American market by leveraging its strong brand portfolio, enhancing product innovation, and optimizing operational efficiencies. The company's North American business also includes a majority stake in Altosano, a leading supplier of fresh pork in Mexico.
In contrast, Morliny Foods will adopt a region-specific growth strategy to address the diverse and fragmented European market.
"We will benefit by being a nimbler competitor with a focused strategy addressing the European food market," said Luis Cerdan, Chief Executive Officer of Morliny Foods. "We are confident this step will accelerate growth opportunities for our people and our company."
With operations in Poland, Romania, Slovakia, Hungary, Spain, and the U.K., Morliny Foods is set to focus on its core offerings of fresh pork, poultry, and packaged meats, tailoring its approach to local market dynamics.
By carving out its European operations, Smithfield Foods aims to capitalize on its North American strengths while allowing Morliny Foods to adapt swiftly to the European market.
This strategic realignment reflects Smithfield’s dedication to optimizing performance and unlocking new growth opportunities, ensuring that both entities can deliver more targeted solutions and innovations to their retail clients worldwide.
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