Vion sticks to the strategy of robust sustainable chains with new CEO
Vion announces changes in the leadership team
Since 2019, Vion has been focusing on building sustainable supply chains with farmers and customers to meet climate goals, ensure fair income for partners, product integrity and improve animal welfare. Vion Food Group is convinced of this strategy and will continue to pursue it with a new CEO.
In recent years, Vion and the entire meat industry have faced significant challenges. African swine fever in Germany led to lower volumes and higher prices, resulting in declining demand and sales. Vion, previously focused on export markets mainly in Germany, has seen competition from lower-cost regions such as Brazil and the USA.
The company now focuses primarily on building sustainable pork, beef, and plant-based chains for the Benelux and European markets.
In 2022, Vion launched the CHANGE THAT MATTERS program to improve financial performance and secure a future-proof business. This forms a solid foundation for executing the strategy.
Announcement: Leadership Transition
With Vion’s strategy now centered on building sustainable chains in the Benelux region, CEO Ronald Lotgerink will step down at the end of 2024, once the transformation is largely complete. CFO Tjarda Klimp will succeed him as CEO. With a strong agricultural background and extensive management experience, Tjarda Klimp will lead Vion into the next phase.
Tjarda Klimp, CFO: “With my farming background, I am proud to lead Vion towards a future-proof organisation, with strong collaboration and innovation as guiding principles. Together with our committed colleagues and supply chain partners, we are working on food safety, economical security for farmers, and affordability for consumers with a strong focus on sustainability for people, the environment, and animals.”
Theo Koekkoek, chairman of Vion’s Supervisory Board: “We sincerely thank Ronald Lotgerink for his commitment and leadership, having guided Vion through a significant part of its transformation towards becoming a fully chain-driven company. We are sure that Tjarda Klimp will complete this transformation and lead Vion into a successful and sustainable future.”
Overview and status of developments in Germany
In August, Vion signed the agreement to sell its shares in the Vilshofen and Landshut sites to Erzeugergemeinschaft Südbayern (EG Südbayern), which previously held a 49% stake in these sites. The transaction is expected to be completed this year, subject to approval by antitrust authorities and closing conditions that must be fulfilled.
On 5 September, Vion announced the signing of a principal commercial agreement with Tönnies Group to acquire most of its German beef activities. This transaction is expected to be completed in 2025 and is subject to approval from the relevant competition authorities, customary approvals and closing conditions. It concerns Vion’s beef operations in Buchloe, Crailsheim (including pork) and Waldkraiburg. Also included in the proposed acquisition are the deboning facility in Hilden, BestHides’ skin processing plants in Memmingen and Eching-Weixerau, as well as most of Vion’s German support operations.
Vion’s review of its German operations is expected to be completed by the end of 2024. Formal approval processes will continue into 2025. Due to the ongoing review, the annual report is expected to be published by the end of October.
Focus on sustainability and animal welfare in the Benelux
Vion has developed extensive knowledge of sustainability and animal welfare. In the coming years, the company’s strategy will emphasize further enhancing welfare and sustainability standards in partnership with farmers, customers, and other stakeholders. As a market leader in pork, beef, and plant-based products in the Benelux, Vion aims to strengthen relationships with retail and foodservice customers while expanding value-added products and services.
“By leveraging our strong relationships with Dutch farmers and our successful chain concepts, we see great potential to further advance our sustainability strategy,” says CEO Ronald Lotgerink.
Ambition to become Europe’s most sustainable protein company
Investments in the Groenlo production plant and new stables area in Tilburg have improved animal welfare standards and supported the growth of organic chains. Through sub-concepts such as Good Farming Sustainability and Good Farming World, Vion continues to make steps in CO2 reduction and lead in international welfare standards. Vion Groenlo specialises in processing the sustainability concepts Good Farming Star and De Groene Weg. De Groene Weg, an independent subsidiary of Vion Food Group, is the market leader in the organic meat sector in the Netherlands and the second largest in Europe.
Future Steps
As a market leader in pork and beef for over 100 years, Vion has become a frontrunner in sustainability and product integrity. The company’s expertise will support both customers and the sector in achieving ambitious sustainability and nutritional goals. Vion aims to become the most sustainable protein company in Europe, targeting CO2 neutrality by 2045 through innovation, productivity, and data-driven supply chains.
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