Australian wine major Treasury Wine Estates (TWE) has named Sam Fischer, current chief executive at local beer and spirits group Lion, as its new CEO and managing director.
Fischer will succeed outgoing CEO Tim Ford, who took up the role in 2020.
In a stock exchange filing, the Penfolds brand owner said the appointment follows a “succession planning” process which included a “comprehensive global search”.
Fischer will take up the position on 27 October, subject to receipt of regulatory approvals.
Meanwhile, Ford will remain in the role until 30 September to “ensure a smooth transition”, the company said.
TWE chairman John Mullen said: “Tim has led TWE during a period of significant change and will be known for his courage in setting bold ambitions, leading to the delivery of significantly strengthened financial performance.
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By GlobalData“As CEO, Tim has stewarded the company through the pandemic, the application and removal of tariffs on Australian wine into China and the transformation of the business to its divisional operating model, led by Penfolds.”
Fischer has over three decades of experience in the global alcoholic beverages, consumer goods, and luxury brand sectors.
At Lion, which is owned by Japan’s Kirin Group, Fischer has overseen beer, wine, spirits, and ready-to-drink operations across Australia, New Zealand, and the US, the statement said.
Before joining Lion, Fischer worked for 15 years at UK-based spirits giant Diageo, in roles including president of Asia Pacific and global travel president and as a member of the Diageo global executive committee.
Earlier in his career, he also held management positions at Colgate Palmolive in Southeast Asia and Eastern Europe.
He has also served as a non-executive director at Burberry Group since 2019.
Mullen added: “Sam brings proven CEO credentials, exceptional strategic acumen, and deep expertise in alcohol beverages, consumer goods and luxury brand building, accompanied by a strong track record of driving business growth.
“Having assessed a highly competitive field of candidates, the Board and I firmly believe that Sam is the right person to lead TWE into its next era of growth and performance.”
Fischer said TWE has “enviable portfolio of brands, global footprint, strong luxury-led strategy and highly talented team”.
He added that in the new role, he aims to “build on the excellent foundations to lead the next phase of TWE’s exciting evolution.”
Fischer joins TWE following the company’s announcement of a profit warning earlier this year.
At the time, the group said it expected roughly A$780m ($498.1m) in EBITS for its fiscal 2025, which is the lower end of its former $780m to $810m guidance range.
The move was “driven primarily by reduced expectations for Treasury Premium Brands”, the group said in the statement.
In its first half, TWE’s Treasury Premium Brands business saw its EBITS fall 29.9% to A$23m, while EBITS margin dropped 5.3ppts to 6.4%.
The declines were driven by “softness in consumer demand for wine at lower price points”, the company said. It also pointed to an “underperformance relative to the category and the cycling of a A$9.7m gain on sale of divested vineyard assets in the pcp [previous corresponding period]”.
TWE reported net sales revenue of A$1.5bn ($963m) in the period, an increase of 20.2% compared to last year. The rise was driven by “strong” growth in its “luxury” portfolio, particularly Penfolds, and contributions from its acquisition of Daou Vineyards which closed in December 2023.
Alongside the release of its first-half results, the group also announced it had decided not to offload its portfolio of “commercial” wine brands after failing to bag a satisfactory offer.
It said the offers it had received for the range, which includes Wolf Blass and Yellowglen wines, “did not represent compelling value and therefore their retention is the best course of action”.
The 19 Crimes producer revealed its intention to sell the wines in August, following a review of “the future operating model for its global portfolio of premium brands”.
In December, TWE struck a deal to buy a 75% stake in Ningxia Stone & Moon Winery for 130m yuan ($18m).
The wine major said the deal, completed in March, fit its strategy of “investing in luxury vineyard and production assets to support the growth of its luxury-wine portfolio”.
In its results for full-year fiscal 2024, net sales revenue rose 13.1% to A$2.73bn, but net profit after tax fell 61.1% to A$98.9m.
EBITS was up 12.8% to A$658.1m on the year prior, while total volumes on a reported and constant-currency basis declined 1% to 21.9 million nine-litre cases.
