VION Food Group has today announced that it will be returning to its core markets, focussing entirely on its food operations in the Netherlands and Germany and on its global ingredients business. The new strategy means that VION will be divesting all its food activities in the UK and a number of non-core activities, including Banner Pharmacaps (divestment announced on 29 October 2012) and Oerlemans Foods (frozen vegetable and potato products). The decision to create a smaller VION, with increased strategic and geographic focus, follows the strategic reorientation implemented earlier this year, the results of which were announced on 15 June 2012. This new course is also aligned with the announcement made on 4 September 2012 that the company would be implementing the strategy.


VION's board of directors and main shareholder have concluded that the new course is essential, given the failure of the previous acquisition and growth strategy in Food, to deliver the expected operational synergies and financial performance. Combined with the poor market conditions in the European pork sector, this has forced the company to take some difficult but necessary decisions.

VION's CEO and executive board chairman Dirk Kloosterboer said: "This is a particularly difficult day for everyone at VION. The decisions we have made have not been easy ones, but they are essential. We are returning VION Food to its core pork and beef activities in the Netherlands and Germany, whilst VION Ingredients will continue to develop globally. The divestments, of which our British food activities constitute by far the largest part, will be implemented carefully. These are steps in a challenging programme to get our food activities back to the desired returns, but I am fully confident that, with the hard work and support of all our people, we will once again ensure VION's strong position in our chosen markets."

Vion received media attention back in the summer for its decision to bypass farmers' co-operatives and insist on paying farmers directly. The move, which Vion attempted with two separate marketing groups, was widely criticised as an unethical abuse of power when an Early Day Motion was tabled by MPs in June.

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