Lion CEO Rob Murray to quit next year
Did his resignation pre-empt his being kicked out? In late February 2012 Rob Murray, 49, informed the board of brewer-cum-dairy company Lion that he would like to move on to a different phase of his life and give up his CEO role in 2013. His resignation came only weeks after Lion reported a disastrous beating of its profits for the year to 30 September 2011.
Of course, Lion was quick to deny the two events were linked. In fact, Lion Chairman Geoff Ricketts reportedly said that 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".
Oh really? Even if the brouhaha over winning the highly profitable Corona contract from Foster’s will soon wipe out memory of last year’s results, market observers have been wondering for some time for how much longer Mr Murray would be able to cling onto his seat.
Mr Murray’s record at Lion is chequered. He oversaw the acquisition of Tasmanian brewer Boag’s in 2007, which was a success. But 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.
His greatest failure, however, is that he missed a great opportunity to catch up with Foster’s in the domestic market while Foster’s was in disarray and losing market share as a consequence of the protracted split of its beer and wine divisions and the almost never-ending sales rumours.
Mr Murray may have had his own reasons for chucking it all in now. Kirin put Mr Murray in charge of integrating the beer and beverage business with dairy processors National Foods and Dairy Farmers, which the Japanese company had acquired in 2007 and 2008 respectively. Especially the dairy business has had a few bad years and continues to struggle.
But fortunately, there is a culprit: the supermarket chains. They are being blamed for everything that betides Australian manufacturers like Coca-Cola Amatil, Foster’s and Lion.
Lion’s outgoing chairman said that the Lion board had been preparing for Mr Murray’s 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; CFO James Tomlinson; and James Brindley, who currently runs Lion’s beer division, Australian media say.
Let’s hope that Lion appoints a successor soon before rivalries amongst candidates will paralyse the company.
