Australia & New Zealand: Lion CEO to step down next year

Lion chief executive Rob Murray is set to quit next year after more than 10 years with the brewing and dairy processing company, The Australian reported on February, 25.

In an internal memo, chairman Geoff Ricketts said that he had "informed the board that he would like to move on to a different phase of his life and give up his CEO role in 2013".

Mr Ricketts said Mr Murray, who joined the board of what was then Lion Nathan in 2002 and was appointed to the top executive role in 2004, had been an "outstanding CEO".

"This very early notice of his intention is typical of Rob's principled and considered approach and enables us to plan well in advance for this critical change in leadership," Mr Ricketts wrote in the memo.

"I would like to thank Rob for taking this approach and we will, of course, have a lot more to say about his contribution and will celebrate his leadership of our business nearer to the time of his actual departure."

The chairman said the Lion board had been preparing for the succession for "many years" and would now begin the official selection process for a new company leader.

Internal candidates for the top job are likely to include Peter Kean, the managing director of Lion's dairy and drinks division; chief financial officer James Tomlinson; and James Brindley, who currently runs Lion's beer division.

As chief executive Mr Murray led a major brand reinvestment campaign that has seen Lion beers including XXXX and Toohey's erode arch-rival Foster's dominant stake in the Australian beer market, as well as the acquisition of Tasmanian brewer Boag's in 2007.

He also led unsuccessful takeover attempts on South Australian brewer Coopers in 2005 and Coca-Cola Amatil in 2008, before the company, then called Lion Nathan, was bought out by Japanese brewer Kirin the following year.

Kirin, which had held a 46 per cent stake in Lion Nathan since 1998, then charged Murray with integrating the beverage business with dairy processors National Foods and Dairy Farmers, which the Japanese company had acquired in 2007 and 2008 respectively. After a name change to Lion Nathan National Foods in 2009, the company reverted to the simpler Lion moniker last year.

The business is the largest single supplier to supermarkets in Australia.

29 February, 2012