Lion moves from turnaround to sustainable growth

Lion Dairy News

Moving into the 2017 Financial Year, Peter West, Lion Dairy & Drinks (LDD) Managing Director, has announced the implementation of a new operating model and structure for the LDD team from today. A decision has been made to incorporate the Lion Asia Dairy business into the broader dairy business. Lion Asia Dairy business will now be known as Lion Dairy & Drinks International and will focus on three main opportunities: South East Asia, Greater China and Industrial/Export.

With a core focus on how LDD, including The Daily Drinks Co, can manage the changing needs of the environment in which it operates, LDD has split into two businesses. At the core of Lion is the nutritional beverages business including all milk-based beverages, yoghurt, juice and the Capital Chilled Foods Australia joint venture. Within this business lies a direct focus on nutritional value and the inherent goodness of the product. The adjacent business includes specialty cheese, which is grocery focused. Vitasoy joint venture and the LDD New Zealand business are additional adjacencies of the business.

“Our challenge is to manage diversity of our portfolio across the business, and achieve the right mix of scale, complexity and focus to drive maximum value with scarce resources,” said Peter West. “The new operating model for LDD supports our ambition in growing nutritional beverages and winning in the yoghurt category to ensure breakthrough availability with winning channels and customers.”

As specialty cheese exists within the adjacent category, this will operate on a standalone basis. Cameron Bruce has recently been appointed to the role of General Manager Lion Speciality Cheese. Kathy Karabatsas will continue her role as LDD Finance Director including the Farm Services team reporting to her; however she has also been appointed Managing Director of Adjacent Business Units and will now be responsible for Lion Specialty Cheese, Lion Dairy NZ and our Vitasoy joint venture.

The decision was also made to re-integrate The Daily Drinks Co into the broader LDD business. This decision is reflective of increased stability and strategic clarity within the juice business over the past two years. The Supply & Demand function of the business has been restructured to a single Sales Director position. Nicola Richardson has been appointed to this role and will be responsible for all Australian customers and channels in the dairy and juice business. Darryn Wallace has been promoted within the business and will lead the dairy and juice marketing and innovation function.

As a result of major improvements across projects within the Supply Chain and overall advancements in Safety, Quality and Service, the decision was made to align Quality in under Supply Chain. Stuart Muir will continue to lead the Supply Chain and Quality function.

David Tyack is now permanently the Managing Director of Capital Chilled Foods Australia and the joint venture with Bega Cheese. Elise Gare will continue to lead the External Relations function and in regards to Legal and People & Culture James Wyatt and Niki King will remain in their roles on the Senior Leadership Team. This new structure has been aligned to help us achieve accelerated growth and positive results for the company.