AUS: Ex-Treasury Wine Estates chief defends himself after departure - report
TWE parted company with its CEO David Dearie last month
The former boss of Treasury Wine Estates has spoken out for the first time following his departure from the group last month.
In an interview with the Sydney Morning Herald, David Dearie rejected the idea that he lacked the “operational” skills to lead the company and blamed the US$160m writedown in the US on past management.
Announcing Dearie's depature last month, Treasury's chairman Paul Rayner said the group needed a “leader with a stronger operational focus”. But, in the interview published today (31 October), Dearie responded: ''I don't know what was meant by 'operational' experience. I had been chief operating officer in the past. So you need to ask the chairman what he meant by those comments.”
Preceding Dearie's exit was a decision in July by TWE to destroy old and out-of-date stock in the US, leading to a AUD160m (US$145.7m) writedown. On this, Dearie said: ''We had a lot more commercial wine than we would like, and that was as a result of decisions made many years ago to focus on the fast moving consumer goods (segment).”
Dearie, who joined TWE in July 2009 when it was still part of Foster's Group, also argued that during his time the company had made “smart decisions” by laying the groundwork for luxury brands to boost profits, it was reported.
He added: "You have got to take - and this is always a challenge with the wine category - a long-term view, it's a long-term approach, markets tend to look at things very short-term, so you've got that dichotomy of who is right.
"There are so many failed wine companies who have looked short-term."
Nobody from TWE was available for comment when contacted by just-drinks today.
Earlier this week, the group was forced to deny allegations of wrongdoing as it faces the prospect of a lawsuit from shareholders over its US business activities.
Treasury Wine Estates (TWE) last week welcomed its new CEO Michael Clarke. He has already made headlines with his maiden speech to investors today. Prior to Clarke's arrival just-drinks sat down with ...
MarketLine's Company Mergers & Acquisitions (M&A), Partnerships & Alliances and Investments reports offer a comprehensive breakdown of the organic and inorganic growth activity undertaken by an organi...
"Foster's Group Ltd.: Consumer Packaged Goods - Company Profile & SWOT Report" contains in depth information and data about the company and its operations. The profile contains a company overview, key...
Treasury Wine Estates has faced serious challenges since its spin-off from Foster’s Group in 2011. The US, which was a key component of its turnaround plan, has thus far failed to pay dividends. In 20...
The report provides a review of the mergers and acquisitions (M&As), partnering deals, and agreements entered into by companies active in the global wine market during December 2013....
- Analysis - SABMiller's Australian issues continue
- Focus - SABMiller's Q1 Performance by Region
- PepsiCo to consider more re-franchising - CEO
- just The Preview - Diageo's FY preliminaries
- Analysis - Coca-Cola fails confidence test
- Diageo's Captain Morgan Facebook ad banned
- Diageo silent over Shuijingfang writedown report
- Sales, profits fall at Moet Hennessy in H1
- Champagne Nicolas Feuillatte appoints new CEO
- SABMiller Q1 sales up 6%