ARLA FOODS POVL KROGSGAARD ANNOUNCES RETIREMENT AND WILL BE REPLACED BY SAMI NAFFAKH FROM THE ESTÉE LAUDER COMPANIES

Arla Foods amba announces the retirement of its Vice CEO, Executive Board Member and Head of Supply Chain, Povl Krogsgaard after 30 years of exemplary service with the Company. Krogsgaard will retire on 31 December 2017 and be replaced by Sami Naffakh, who has been appointed Executive Vice President and Head of Supply Chain. Naffakh joins from The Estée Lauder Companies, where he is Senior Vice President, Global Supply Chain – Europe, Middle East and Africa (EMEA).

Krogsgaard’s Arla Foods career spans a period of substantial growth and change as the Company has evolved from a Danish and Swedish dairy co-operative with limited international reach to a co-operative with farmer owners in seven European countries, a global sales and Supply Chain footprint and revenues of over 10 bnEURO.Formerly an Executive with MD Foods, whom he joined in 1987, Krogsgaard was appointed to the Arla Foods Executive Team in 2000 when the two companies merged and was made Vice CEO in 2004.

Commenting on the announcement, Arla Foods Chairman, Ake Hantoft said: “On behalf of the Board of Directors, our farmer owners and Povl’s many colleagues around the world I would like to thank him for his exceptional service to the Company. Arla Foods has changed much over the years and he has been one of the most instrumental figures in shaping and delivering that change to make sure we stay fit and keep growing. His dedication and deep knowledge of our Company and industry has been of incredible value. We wish him well for his retirement.”

Arla Foods CEO, Peder Tuborgh said: “Povl has been a first class leader and a great support to me. He leaves an exceptional legacy, having built some of the global dairy industry’s most advanced and sustainable dairies, and a Supply Chain which has created many significant advances which have been key to us bringing innovative and ground breaking products and practices to consumers, our customers and our farmers. He has developed and mentored many exceptional leaders and has also made a significant contribution to the wider dairy industry.”

Sami Naffakh will join Arla Foods in January 2018. He has a blue chip career covering leadership roles with Danone Early Life Nutrition, Reckitt Benkiser and Unilever in addition to The Estée Lauder Companies, whom he joined in 2014. He has extensive global experience having led Supply Chain operations in EMEA and Asia Pacific, national roles in the UK, Spain and Algeria and of leading major transformation projects. Naffakh, who is French, holds a Masters in Industrial Engineering from the Ecole des Hautes Industrielles in Lille and is married, with three children.

Commenting on Naffakh’s appointment, Tuborgh said: “Sami has proven global leadership skills and a strong understanding of both consumers and the major trends and challenges facing our customers, which are critical to the successful delivery of our Good Growth 2020 strategy. I am very much looking forward to him joining our Executive Management Team as we continue to build strong brands and work closely with our customers to bring both product and production innovation to market to fuel the growth of the global dairy market.”

As a result of the Company’s successful re-organisation last year, which included changes to the make-up of its Executive Management Team (EMT), to better support its brand and global growth agenda, the Arla Foods Board of Directors has taken the decision not to appoint a new Vice CEO or Executive Board member, fully endorsing the EMT as the top management group, headed by the CEO, Peder Tuborgh.