Major move for TWE's Angus McPherson
Treasury Wine Estates has announced that Angus McPherson is its new President – Americas and Global Sales, leading the Americas business and drive sales strategies.
McPherson was previously Managing Director, ANZ & Europe.
“Angus has been with the company for more than eight years, and has led outstanding performance of numerous TWE regions around the world including (Australia/New Zealand), Europe and (South East Asia, Middle East and Africa),” TWE said.
McPherson will be based in Oakland, California and succeeds Victoria Snyder, who left the company on August 19.
“We’d like to thank Victoria Snyder, who will be moving on from TWE, and wish her well for the future,” the company said.
TWE’s assets in the US include Beringer Vineyards, Beaulieu Vineyard, Provenance Vineyards, Chateau St. Jean and Etude.
CEO Michael Clarke described McPherson as a "rock star" during TWE's latest investor call.
The company recently celebrated an organic net sales revenue rise in Australia of 3.1%, led by gains across its premium Australian wine brands and within the on-premise channel.
Australia and New Zealand reported 15% EBITS growth to $156.5million, driven by growth across the masstige and lower luxury portfolios, improving performance in the on-premise channel and an ongoing focus on managing costs.
McPherson said: “In many respects ANZ is a gold standard region with strong collaborative relationships with our retail partners combined with the growing portfolio of luxury and masstige brands that we are actively investing behind is combining to deliver excellent results.”
TWE also noted that its 25% market share target in Australia had been maintained.
The current state of play in the US
During TWE's FY19 investor call, CFO Tim Ford said the Americas had delivered top line growth and increased earnings despite TWE's significant route-to-market changes, which were fully implemented in fiscal 2019.
Net sales revenue increased 9% and EBITS were up 2% to $219 million. Margin declined 1.4% to 19.3%, but was up 0.8 percentage points versus the first half, which was a result of a high cost of doing business in the form of TWE's investment in new sales and merchandising teams, as well as transitional costs to support the successful implementation of its new route-to-market model.
"In relation to our new route-to-market, we are very pleased with the progress we have made in this first full financial year, and remain confident with the decision we have made to implement these changes," he said. "It is absolutely the right thing to do and we believe in it.
"Our distributor partners, both new as well as existing. are working well. And we are achieving positive momentum working with our new retail partners also. We continue to work closely with all of these partners to embed new ways of working with a specific focus on driving improved distribution and availability of our portfolio. Importantly, complimented but targeted investment in programs and activation that draws increased consumer pull-through, specifically on priority brands."
Ford also noted: "It's really important to remind everyone, the changes we have undertaken are substantial. And while the model is now implemented, we also recognise there remains work for us to do to optimise our performance and deliver on our aspirations."
The positive momentum has been led by the continued strong growth of 19 Crimes, with volume and value growing above 30% in FY19. Additionally, the Matua brand from New Zealand, has also continued a strong performance with above 30% growth in both volume and value in the US.