AUS: Constellation Brands begins Europe, Australia "realignment"

Constellation Brands has begun a "realignment" process of its European and Australian wine divisions.

 

The process follows the appointment in June of Troy Christensen, the president of Constellation Europe, to also head up Constellation Wines Australia.

 

Christensen has been in Australia for three weeks, looking at how to reduce costs and inventory, although no further job cuts at either division are expected. He will subsequently split his time between Australia and Constellation Europe's headquarters in the UK.

 

Speaking to just-drinks today (11 August), Christensen said his task was "to make the two businesses - Constellation Wine Europe and Constellation Wine Australia - highly dependent upon each other, and find synergies, which in this very difficult marketplace is very important.

 

"We've all built too much complexity in the business," he said. "So, by having someone responsible for both businesses on the ground helps us to focus on the important things, which are the customers, and not talking to ourselves.

 

"It's really not about job cuts, it's more about alignment. Both businesses have gone through headcount reductions. The idea here is to make the business operate a little bit better on focus."

 

Specifically, Christensen said the company was looking to draw down inventory and improve the efficiency of its supply chain.

 

"The UK is a core export market for our Australian business, while Australia still distributes domestically," he said. "We're trying to figure out how to make the two businesses work together."

 

Late last week, Peter Dawson, senior vice president of group operations and technical, left Constellation Australia after 30 years with the company.

 

Last month, Constellation Brands posted a marked fall in profits for its first quarter, with Europe and Australia both dragging on the company's performance.

 

Back in March, Constellation confirmed that it was looking to cut 5% of its global workforce, due to weakening economies in its key markets.