Global wine company, Treasury Wine Estates will be searching for a new CEO following the exit of David Dearie, who has held the position for the last two years.
According to a statement released this morning, Dearie’s exit will take effect immediately with Warwick Every-Burn, a non-executive member of the board assuming the position until a permanent replacement is found.
Under Dearie's leadership, the company wrote-down a $160m hit to before tax earnings after ambitious sales forecasts led to an oversupply of wine in the US.
The move saw the company destroy old stock, and heavily reduced the price of selected wines to maintain quality and cope with a restructure of its distribution system into America.
Paul Rayner, TWE’s Chairman thanked Dearie for his time at the company, and stated that the business requires a ‘leader with a stronger operational focus’ moving forward.
“Over the last two years David has played a critical role in guiding TWE through its demerger and establishing the Company as a standalone business. He has also successfully built the profile of TWE’s iconic wine brands internationally,” said Rayner.
“However, following the write-down of excess US inventory announced on 15 July 2013, the Board has undertaken a review and concluded that now is the right time to look for a new CEO. In particular, having established a solid platform since demerger, the Board believes TWE needs a leader with a stronger operational focus to deliver the Company’s growth ambitions.”
“The Board thanks David for his many contributions to the business, and wishes him the very best in his future endeavours. I also look forward to working closely with Warwick and the executive management team during this transition phase as TWE looks to build upon the foundations laid since demerger.”