Days after regulators waved through its billion-dollar deal with Lactalis, Fonterra announced it’s parting ways with company veteran and CEO Miles Hurrell.
Fonterra chair Peter McBride said Hurrell, who spent 25 years at Fonterra including the past eight as CEO, had resigned, having “decided that the time is right...to leave the co-op”.
“When he was appointed CEO in 2018, Miles was tasked with leading a reset of the business to turn around Fonterra’s financial performance and rebuild farmers’ trust,” said McBride.
“On behalf of the Board, I thank Miles for his courageous leadership. He has overseen a significant strategic reset, focused on getting the co-op back to its core strengths. In doing so, he has helped lift Fonterra’s financial discipline and built the strong foundations the co-op has today.
“I know I echo the sentiment of farmers when saying that Miles will leave with sincere thanks for his 25 years of loyalty and best wishes for the future.”
McBride added that the co-op’s management regularly discusses succession plans and will look to appoint a new CEO ‘in the coming months’ as Hurrell sreves out a six-month notice period.
Hurrell mulls over ‘what’s next for me’
Since his appointment as CEO in 2018, Miles Hurrell led Fonterra from a loss-making business to a profitable global dairy player.
Hurrell took over the reins from Theo Spierings, who oversaw Fonterra’s expansion into China and consolidated the co-op’s operational structure from four separate divisions into a single umbrella group. Spierings’ exit came after mounting pressure from failed investments and financial losses, however, with Hurrell tasked with steadying the ship and reigniting farmer trust.
Over his eight years as CEO, Hurrell focused on simplifying Fonterra’s structure through strategic divestments, including:
- divesting New Zealand ice cream brand Tip Top to Froneri;
- selling its stake in pharmaceutical company DFE;
- selling its joint-venture farms in China and its stake in infant formula maker Beingmate;
- exiting a joint venture with Nestlé in Brazil, and
- divesting its Chile business, Soprole.
The most notable strategic change in Hurrell’s time was the recently-completed sale of Fonterra’s consumer and associated businesses in Oceania and MEA to Lactalis Group. The deal is expected to return NZ$3.2bn in capital to shareholders and enable the co-op to focus on its more profitable Ingredient and Foodservice divisions.
Hurrell looked set to lead Fonterra into this next strategic phase, having announced co-op investment in protein, UHT milk, cheese, and butter production in recent months. But on March 15, Fonterra announced the chief executive had resigned.
“When I took the role of CEO, I understood our financial results are not just numbers but the livelihood of thousands of New Zealand farming families,” Hurrell said in a statement. “I have always felt a great sense of responsibility to do what’s right for farmers and I believe the co-op is now in a really good place.
“While it’s not an easy decision to step away, the time is right for both the co-op and me personally.
“Fonterra’s entering the next phase in its strategic implementation, which marks a natural turning point for a new leader to step in while I consider what’s next for me.
“I know that the business will be in good hands. There’s an exceptional team of people who will carry the Co-op forward and continue to drive value for farmers.”
