We create a new business – Consumer Foods – under the leadership of Germar Wacker. This business combines our current Consumer Foods business and the Haas business into one new pillar for the Bühler Group.
In 2017, we started the evolution of the Grains & Food (GF) organization with the objective of simplifying the organization and providing a clear focus for every business area in GF. This involved combining smaller business areas with larger and more powerful ones, including the integration of Bakery into Consumer Foods.
At the same time, we were able to implement a major strategic move and acquire the Haas Group. The closing took place in January 2018, and since then, Haas has been run as a separate new business of Bühler. When we started this joint journey, we focused on creating value for our customers and providing Haas with the freedom to operate relatively independently. We wanted to benefit from the additional potential in the market by leveraging the strengths of both organizations and first do the homework to improve the operations in Haas and in Consumer Foods. This approach showed remarkable results in a very short time and the business results of both Haas and the Bühler Consumer Foods developing positively. The reactions from our customers to our new offering have been very positive and underscored, yet again, during the very successful first joint booth of Bühler & Haas at the iba in Munich this week.
For this reason, we have decided to take the next step in our organizational development a full year earlier than originally intended. In the June meeting, the Bühler Board of Directors approved our concept to create a new business - Consumer Foods - under the leadership of Germar Wacker. This business combines our current Consumer Foods business and the Haas business into ONE new pillar for the Bühler Group. In future, we will therefore have not two but three business pillars, namely Grains & Food, Consumer Foods, and Advanced Materials. The new organization will become effective January 1, 2019.
This new business addresses a market potential of approximately CHF 4 billion. We would like to benefit from our current market leadership position to grow our market share to 25%, such that our long-term strategic objective is to create a CHF 1 billion business from the current joint turnover baseline of CHF 700 million. The basic concept for the business units within the new business pillar Consumer Foods is established and the corresponding business unit managers nominated. The fine-tuning of the organization will begin with the target of completing the frameworks by year-end, in order to start the joint operation beginning of next year.
The business units in the new Consumer Foods business will be:
As a consequence of this evolution, Germar Wacker will be appointed as a new member of the Executive Board as of January 1, 2019. I would like to congratulate Germar for this nomination and warmly welcome him as a member of the Executive Board of Bühler. I would also like to extend my sincerest thanks to Johannes Wick for having prepared and paved the way for this strategic development of our company. I wish everyone involved the very best for this exciting new journey. I am convinced that we will make our company stronger and even more successful for the future with this important development.
With kind regards,