MG appoints new managing director

Commenting on the appointment of Mervis, chairman Phillip Tracy highlighted the board’s desire for MG’s incoming CEO to possess extensive operations and consumer goods experience. “After a comprehensive international search, the Board unanimously agreed that Ari was the ideal choice to lead MG at this critical juncture in its history. We are delighted to have secured a candidate with a proven track record of delivering results and operational success across multiple geographies,” Mervis’ career with SABMiller, the world’s second largest brewer, began in 1989 and included senior positions in South Africa, Swaziland, Russia and Hong Kong. In his most recent capacity,Mervis was Managing Director of SABMiller in the Asia Pacific and CEO of Carlton & United Breweries in Melbourne, with responsibility for overseeing businesses across Asia Pacific including China, India, Vietnam, South Korea and Australia. “I am extremely pleased to be joining MG and see it as an enormous privilege to lead such an iconic business that plays an important role in the daily lives and livelihoods of so many Australians,” Mervis said. “Murray Goulburn is a great company, with a long and proud history. I am looking forward to partnering with MG’s dairy farmers, employees, customers and stakeholders to restore this great Australian co-operative, as we adapt to the challenges and opportunities facing the dairy industry globally. “I look forward to working with the Board and Executive Leadership Team to ensure we strengthen MG’s position as Australia’s leading dairy company.” Murray Goulburn moved in April last year to slash the price of milk that it pays farmers and rival Fonterra Australia followed suit in early May. The companies blamed a slump in global commodity prices and the strength of the Australian dollar. Global dairy prices were hit by significant growth in supply, Russian sanctions on dairy imports, slowing demand in China and highly competitive markets. The cuts to the farmgate milk price hurt dairy farmers deeply, loading many with debt, forcing some out of business, and left others rethinking their future. The cuts and an accompanying downgrade to Murray Goulburn's profit forecasts cost managing director Gary Helou his job, while the ACCC and the Senate launched inquiries into the dairy industry.