Treasury Wine Estates Ltd (ASX: TWE) shares are having a tough session on Thursday.
In morning trade, the ASX 200 wine stock is down 8% to $8.40.
Why is this ASX 200 stock sinking?
Investors have been hitting the sell button on Thursday after the wine giant announced a surprise leadership change.
According to the release, Tim Ford is leaving Treasury Wine after 14 years at the company and five years as CEO and managing director. He will remain as CEO until 30 September.
The release notes that succession planning undertaken by the board has been underway for an extended period of time, including a comprehensive global search. As a result, Treasury Wine has been able to find its new leader, revealing that Sam Fischer will replace Ford from late October.
The company highlights that Fischer is a proven CEO with more than 30 years of global experience in alcohol beverages, consumer goods, and luxury brands. He has an "impressive track record leading organisations through periods of significant transformation and growth."
Fischer is currently the CEO of Lion, which is owned by the Kirin Group. It is an alcohol beverage industry leader whose portfolio spans beer, wine, spirits and ready to drink beverages. During his three years with Lion, the company notes that he has delivered decisive leadership to return the business to a market leader with a high-performance culture.
'Thrilled'
Commenting on the appointment, Treasury Wine's chairman, John Mullen, said:
Following an extensive global search for Tim's successor, I'm thrilled to welcome Sam to TWE. With over 30 years of global leadership experience, Sam brings proven CEO credentials, exceptional strategic acumen, and deep expertise in alcohol beverages, consumer goods and luxury brand building, accompanied by a strong track record of driving business growth.
Having assessed a highly competitive field of candidates, the Board and I firmly believe that Sam is the right person to lead TWE into its next era of growth and performance.
Fischer appears up for the task of leading the ASX 200 stock. He said:
It's a privilege to be joining TWE with its enviable portfolio of brands, global footprint, strong luxury-led strategy and highly talented team. I've long admired the business and it's an honour to have been selected by the Board to build on the excellent foundations to lead the next phase of TWE's exciting evolution.
Commenting on his exit, Ford said:
Leading TWE over the past five years has without doubt been the highlight of my career. I am immensely proud of all that our team has achieved, both during my tenure as CEO and across my broader career at TWE. I thank our team for all their dedication in building TWE into a global leader in luxury wine.
