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Latest headlinesPeople & Industry News

Company News

Smithfield Foods Carves Out European Operations

Smithfield Foods’ logo
August 27, 2024

Smithfield Foods has carved out its European operations to accelerate growth opportunities of both businesses. 

Smithfield Foods and Morliny Foods, previously known as Smithfield Europe, will remain subsidiaries of WH Group.

Over the last decade, Smithfield Foods has transformed its North American business by growing and expanding the profit contribution from its higher-margin packaged meats segment while improving the cost structure and commodity market exposure in its fresh pork and hog production segments. Smithfield expects to continue to drive North American growth by building packaged meats share through product innovation, leveraging a brand portfolio that spans consumer price points, continually optimizing its operations and through investments enabled by stable cash flows and a strong balance sheet.

Smithfield Foods' North American presence includes a majority stake in Altosano, previously known as Granjas Carroll de México, a joint venture in Mexico and one of the nation's leading suppliers of fresh pork.

Morliny Foods has adopted a region-specific growth strategy to address a more fragmented European market with different market dynamics than in North America. The business supplies fresh pork and poultry and packaged meats across the continent from operations in Poland, Romania, Slovakia, Hungary, Spain and the U.K. 

"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," says Shane Smith, president and CEO 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."

"We will benefit by being a nimbler competitor with a focused strategy addressing the European food market," adds Luis Cerdan, CEO of Morliny Foods. "We are confident this step will accelerate growth opportunities for our people and our company."

KEYWORDS: Europe Smithfield Foods

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