The move indicates the company is increasing its focus on the rising markets, with SCA stating that it intends to use the move to share best practice more easily throughout its operations.
“SCA will integrate its Business Unit MEIA (Middle East, India and Africa) into Business Unit Consumer Goods to leverage our scale and capabilities and to further increase efficiency,” the company confirmed in statement.
“Combining these organizations will help to capture synergies and facilitate best practice sharing within the consumer business.”
Future growth opportunity
According to the SCA, the reorganisation is intended to increase the company’s competitivity in the MEIA countries and set it up for growth opportunities in the emerging markets, while drawing its operations more closely in line with the company’s efforts in Europe.
“This integration provides us with the scale to stay competitive in a region to which we are committed and creates a strong foundation for future profitable growth,” commented Magnus Groth, CEO and President of SCA.
Volker Zöller, President, SCA Consumer Goods explained: “We aspire to implement the relevant parts of our successful European Go-To-Market program in MEIA and to leverage innovation on a broader scale.”
Business units together
SCA’s business unit of MEIA countries centres around its personal care and tissues product offering. The business unit accounted for 2% of the Group’s net sales for the first quarter of 2016. Its consumer goods business unit, which offers consumer goods in Europe, accounted for 30% during the same period.
The integration of the two business units will be effective as of November 1, 2016, according to the company. SCA’s brand portfolio includes global brands such as TENA and Tork, and regional brands, such as Libero, Libresse, Lotus, Nosotras, Saba, Tempo, Vinda and Zewa.