Murray Goulburn’s (MG) new chief executive and managing director Ari Mervis said one of his key priorities would be to stabilise the company after a difficult year.
Mr Mervis, who joins the company from brewer SABMiller, has 27 years’ experience in the beverage sector. A former managing director of SABMiller in the Asia Pacific and chief executive officer of Carlton & United Breweries, Melbourne, Mr Mervis had responsibility for overseeing businesses across the Asia Pacific.
“(Fosters) was a very iconic brand and there was an enormous amount of latent equity in trade and employees, but we needed to restore the quality and integrity of the brand,” Mr Mervis said.
“I think we need to stabilise the organisation (MG) and we need to restore its confidence and its self belief.”
In April, MG announced it was cutting the price paid suppliers for their milk and managing director Gary Helou resigned.
The co-operative said that was due to changes in the exchange rate; lower than expected adult milk powder sales in China; and a revision of the value of its stored milk supplies.
Mr Mervis said in his first 100 days, he intended to get out and meet as many suppliers and stakeholders as possible, to understand the core drivers of the business.
MG chairman Phil Tracy said it had been a challenging seven months for MG and the appointment was a “very positive piece of news”.
The board had conducted an intensive search for someone with operational experience and exposure to the consumer goods market.
Mr Tracy said the board also viewed Mr Mervis’ role as CUB chief executive, in stabilising and rebuilding that business, very favourably.
“Murray Goulburn is a complex business and we have complex operations and markets we will be selling into, which have similar characteristics to what Ari has been working with,” Mr Tracy said.
“Getting the business back into a fit and proper state, to take us on to the next chapter, is critical.”
