By Ian Neubauer

The Foster’s Board announced today it had accepted the resignation of CEO Trevor O’Hoy.

“It’s been a privilege to devote my working life to Foster’s and to lead a team of talented and passionate people,” O’Hoy said in a statement. “It’s now time to stand aside and allow the next generation of management to lead the business forward.”

O’Hoy’s resignation coincides with the announcement of a revised fiscal 2008 earning outlook and strategic review of Foster’s under-performing global wine business.

Appointed to lead Foster’s in 2004, O’Hoy took the company through a period of significant structural change. He oversaw the $3.7 billion acquisition of local winemaker Southcorp and introduced the multi-beverage strategy under which wine, beer and spirits are sold together.

However, problems with the multi-beverage strategy and an admission to shareholders that the company paid too much to acquire wine assets, have tainted O’Hoy’s legacy at Foster’s.

Nevertheless, Foster’s Chairman, David Crawford, said O’Hoy had served with distinction.

“On behalf of the Board, I sincerely thank Trevor for his hard work and dedication throughout his 33 year career with the business,” he said. “The Board will now begin a rigorous international search to identify a successor.”

Foster’s shares dipped 2 per cent following news of O’Hoy’s resignation this morning. But the shares rallied by midday, regaining lost ground and gaining additional 3.5 per cent in value. 
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The Shout Team

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