David Dearie leaves Treasury Wine Estates with immediate effect

David Dearie leaves Treasury Wine Estates with immediate effect

Treasury Wine Estates has confirmed the departure of its CEO with immediate effect.

The Australia-based wine producer, formerly part of Foster's Group said earlier today (23 September) that David Dearie will “leave the business”. Dearie, who took the helm prior to TWE’s demerger from Fosters in May 2011, is being replaced on an interim basis by non-executive board member Warwick Every-Burns.

“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,” Said Treasury's chairman, Paul Rayner. “He has also successfully built the profile of TWE’s iconic wine brands internationally.”

“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 stock write-down in the US this year was estimated in July to result in a AUD160m (US$145.7m) hit to fiscal 2013 pre-tax profits.

Indeed, in the company's fiscal full-year results, announced last month, net profits were down by 53% at AUD42.3m.

For the company's announcement, click here.

Check back on just-drinks later today for further coverage and analysis of Dearie's departure.