Former senior executive at Kraft Foods and Coca-Cola, Michael Clarke will assume the position of CEO at Treasury Wine Estates as of March 31.
Clarke recently held the position of chief executive at Premier Foods in London, where he led a significant turnaround of the company’s performance, The Weekly Times Now reports.
Although Clarke does not have any experience within the wine sector, Chairman of TWE, Paul Rayner says that given Clarke’s extensive high level experience, and the troubles that TWE have experienced in recent years, a leader outside of the wine industry, such as Clarke, is exactly what the company needs.
TWE’s share price plummeted after the company informed shareholders last year that it would be writing-off almost 600,000 cases of old wine, equating to a $34m loss, and a futher $82.4m writedown on the value of bulk wine that was sold at fire sale prices.
“Treasury Wines, going back to the Foster’s years, has been run by wine people for 12 to 15 years, and you draw your own conclusions on how much success they’ve had,” Rayner told reporters.
“I think people would say it hasn’t been that great.”
“I think we’ve got a real heavy hitter based on his experiences in global iconic brand companies at extremely senior levels,” he said.
Clarke said that he is looking forward to working with TWE despite the company’s recent challenges.
“I recognise that TWE, like most companies, has its challenges but I believe the opportunities are immense,” he said.
Rayner says that as Clarke recognises the growth potential in the business, he would be unlikely to sell off the struggling US operation.
“He has very much said that he has taken this job because it’s a global job,” said Rayner. “He's committed to the growth prospects of the company.
“I think it’s most unlikely that he'd be able to achieve the growth prospects that he foresees unless we had a US business.”