Treasury
Wine Estates CEO Ousted
After $33 Million Wine Dump
By FBWorld Team
Treasury
Wine Estates CEO David Dearie was ousted Monday following
his decision to destroy about $33 million in unsold wine
that was past its prime.
Some
have argued it could have made great vinegar.
Treasury, which owns several Sonoma County wine brands
and vineyards, cited the action as a "key factor"
in its decision to dismiss Dearie.
"Over
the last two years David has played an important role
in guiding TWE," Treasury Wine Estates chairman Paul
Rayner said in a conference call with investors. "He
has also successfully built the profile of TWE's iconic
wine brands internationally.
"However,
following the write-down of excess U.S. inventory ...
the board has undertaken a review and concluded that now
is the right time to look for a new CEO," Rayner
continued. "The recent inventory issue in the USA,
including the one-off losses incurred ... significantly
dented our overall performance for fiscal 2013 and was
a key factor in this decision."
In
July, Treasury disclosed plans to dump more than a half-million
cases of wine, mostly made in the United States. Dearie
said the move would protect the company's reputation by
making sure the spoiled wine did not reach consumers.
But
when sales failed to reach expectations, the company came
under increasing pressure from investors to justify its
U.S. operations.
Read
here for the rest of the story.
By
CATHY BUSSEWITZ
THE PRESS DEMOCRAT
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