After a global search for a new chief executive, Foster's Group has appointed Ian Johnston, the board member who had been acting in the role since the departure of the previous chief executive Trevor O'Hoy.
The first major item of Mr Johnston's agenda will be the completion of a review of the drinks maker's's troubled wine business, which will consider the possibility the wine and beer businesses could be demerged or sold off.
Mr Johnston, 61, was previously managing director of global confectionery for Cadbury Schweppes and served as a director at Foster's since September last year. His appointment is a surprise given last month it was revealed at the company's annual results that he was not on the shortlist
for the job.
Shares in Foster's gained 31 cents, or 5.8%, to close at $5.66.
Foster's chairman David Crawford today described Mr Johnston as an ''experienced and capable'' executive.
''Ian understands the nature of the global marketplace, and has a proven ability to build sustainable business performance by growing the top line, and investing in innovation and capability,'' he said in a statement.
''We have been absolutely clear and consistent that we would appoint the best person to lead the company, and have conducted a rigorous international search to this end.
''Having initially intended to return to his non-executive role, Ian recently indicated his availability to take on the CEO appointment. Ian's mix of skills and experience, combined with the positive impact he has made over the past few months, convinced the board that he was ideal for the
role.''
''Ian has had an opportunity to get across the business during his time as acting CEO and will hit the ground running. Ian is passionate about Foster's and begins today with a renewed mandate to lift business performance in line with our own expectations and those of shareholders.''
Mr O'Hoy left the chief executive role in June following a $700 million writedown of the company's wine businesses in Australia and the United States. Since acquiring Californian winemaker Beringer in 2000, the company has been hit by a rising Australian dollar and a trouble-prone
multibeverage distribution strategy.
Commenting on his appointment, Mr Johnston said ''it is a privilege to have the opportunity to lead this great business and take on the challenge of driving improved and sustainable business performance''.
''In my short time in the business, I've been impressed with the strength of our brands, the progress we are making in optimising our supply chain globally and the potential of our people.
''Foster's has strong fundamentals, and I am absolutely committed to building on these strengths while improving business performance and tackling the strategic challenges we face.''
Foster's also announced the retirement of Graeme McGregor as a director of the company, effective from the end of the Annual General Meeting next month.
The Age
