Andrew Carter, Chief Commercial Officer APAC & EMEA, has decided to leave Treasury Wine Estates Ltd following a series of organisational changes.

 

This follows overall structural changes to TWE’s operations which will result in significant changes, including managing its Asia and Europe, Middle East & Africa (EMEA) regions separately to Australia and New Zealand. Consequently, Andrew Carter, Chief Commercial Officer APAC & EMEA, has decided to leave the company and TWE CEO Michael Clarke wished him well, while thanking him for his contributions on behalf of the business.

 

Carter was appointed Managing Director of Europe, Middle East & Africa, (EMEA) and Global Travel Retail for Treasury Wine Estates Limited back in January 2012, after leaving Bacardi Global Travel Retail where he was Managing Director. He was subsequently promoted to the position of Chief of Staff at TWE, where he remained responsible for leading EMEA & Global Travel Retail, but took on additional leadership responsibilities for Corporate Strategy & Business Development, transformational projects and the running of the CEO office.

 

All of this follows yesterday’s announcement that TWE is making ‘substantial changes’ to its business model by changing the release date of its flagship Penfolds wines to better manage allocations and availability. In addition, the Company will focus on its Australian Commercial portfolio separately from its Luxury & Masstige portfolio.

 

As part of an announcement to the market on 8 April 2014, CEO Clarke identified four immediate priorities to drive improvements in TWE’s performance. These were: Execution of existing plans to deliver fiscal 2014 earnings guidance; increased consumer marketing to support TWE’s brands; a reduction in overhead expenses; and addressing structural challenges within the business.

 

 

 

NEW VINTAGES RELEASE DATE MOVE

As part of its premiumisation strategy and ‘plans to further improve the company’s business model’, TWE will move the release dates for new vintages of its Penfolds Bin Series and Penfolds Icon & Luxury Collection wines to one combined annual release, commencing 16 October 2014.

 

TWE says this will ensure that Penfolds wines are available for sale over a much longer trading period and help TWE establish a more sustainable business model. An October release also means the company is better placed to manage allocations and inventory levels with key customers around the world throughout the year – in contrast to selling through the release in the final quarter of each fiscal year.

 

Clarke said: “The Commercial wine market is markedly different to that of Luxury & Masstige and we need to consider new operating models and ways of working to realise growth and improve profitability across both”.

 

TWE says it has now completed a detailed review of its long-term plans and will now recognise a non-cash brand and related-asset impairment of up to A$260m (after tax, unaudited) in fiscal 2014. The impairment reflects the combination of historical prices paid for pre-demerger acquisitions and the decline in market growth rates for commercial wine globally; and relates to the Company’s Commercial brands, IT, plant and equipment assets.

 

Clarke added: “Today’s announcement of an asset impairment further highlights the need for TWE to do things differently. The current business model is not being optimised and fails to reflect the company’s outstanding capability, brands and people.”