By SIMON HENDERY, liquor writer
New Zealander Ted Kunkel is stepping down after 12 years at the helm of Australian drinks giant Foster's Group.
The one-time Selwyn College head prefect and Auckland University graduate will leave his A$2.7 million ($3 million) job as Foster's president and chief executive officer before the end
of the year.
The company, which had global sales of A$4.7 billion last year, is still looking for Kunkel's successor but expects to have appointed one by the end of June.
Kunkel, 60, joined Foster's Carlton & United Breweries in 1968 as an assistant brewer.
He moved up the CUB ranks and headed the group's former Canadian brewing operations before taking up his present role in 1992.
Kunkel took on the top job at a time when Foster's was technically insolvent, successfully restructuring and refocusing the business.
The company has since grown from a market capitalisation of about A$3 million to A$9 billion.
One of Kunkel's biggest gambles was turning Foster's into a global player in wine, which now accounts for about half the group's sales.
The group spent A$2.9 billion buying California's Beringer Wine Estate in 2000, merging it with Mildara Blass to form Beringer Blass Wine Estates. Beringer's business includes New Zealand's Matua Valley Wines.
Foster's expansion into wine has experienced difficulties.
The company has battled strong competition and a global oversupply of grapes.
Investors will get an update when Foster's releases its half-year result today.
Kunkel intends to step down from the Foster's board, but will retain other business interests he has in Australia, including a seat on the board of Billabong, and will look at picking up other directorships.
Foster's said yesterday that it had a succession management plan in progress and was looking at both external and internal candidates to replace Kunkel. Heading the list of contenders is CUB managing director Trevor O'Hoy.
