US-based veteran stunned by Fonterra dismissal

By PHILIPPA STEVENSON

Fonterra's global organisational shakeup has cost the job of a 12-year industry veteran who headed its $1 billion NZMP subsidiary in the Americas.

Florida-based NZMP managing director Jim Hepburn, who had more than two years to run on a five-year contract, said his dismissal came "out of the blue".

An industry insider described Hepburn as very competent and good with customers but a tempestuous man who did not tolerate fools gladly.

"He might not be everyone's cup of tea and was possibly too much of a straight shooter," the source said.

From his Fort Lauderdale home yesterday, Hepburn told the Herald he got a one-sentence reason for his unexpected redundancy in a letter written and delivered by NZMP global network director Jay Waldvogel. He "no longer fitted into the company's organisational structure", said Hepburn, who left the job last week. "That's it. Goodnight Charlie."

He said he had been with the company in a variety of positions for 12 years and 3 months, and in America since June 1999. There had been no interview about his position, which he enjoyed and had intended to stay in. "I just got a letter, that's it."

He was still discussing termination matters with NZMP. His contract included a non-competition clause and was not due to expire until June 2004.

Hepburn said any explanation for his dismissal would have to come from NZMP managing director Chris Moller. "He's the fellow you need to ask if you want to know because as sure as hell I don't know."

Moller's only comment on Hepburn was to praise his "significant contribution to the industry over a number of years".

He refused comment on the manner of Hepburn's dismissal, and organisational changes in the Americas operation.

He said a reorganisation of the Florida-based division was under way and staff needed to be told first. He could not confirm whether it would remain in Fort Lauderdale.

"Everything in NZMP globally is being reviewed," Moller said. "There are very significant changes both here in New Zealand and in various parts of the world.

"That is an ongoing process to capture the gains [which] the merger of the three legacy companies into Fonterra is all about, and deliver to shareholders the promised benefit."

A new managing director of the Americas would be appointed with "slightly changed responsibilities and a change in location", he said.

Under the new business model regional managing directors would also have responsibility for an operating company or region.

The model had operated for nearly two years in Asia, where Brent Taylor was the regional MD responsible for a hub comprising Korea, Taiwan and China.

In Paris, Grant Waterhouse was managing director for Europe, now grouped with Africa, the Indian subcontinent and the Middle East.

Moller said that under the previous Dairy Board structure, ingredients supplier NZMP and consumer products division NZ Milk "co-habited" in regional offices in Singapore, Europe and Florida.

The two divisions were now separating to reinforce the customer/supplier relationship and "both organisations are tuning their overheads to meet the needs of the business".

Meanwhile, Mexico's largest milk powder importer, Liconsa, yesterday confirmed a contract for NZMP to supply $100 million of product over the next year.

Liconsa supplies milk powder and reconstituted milk to Mexico's poor.

A supply agreement was signed with Liconsa last November during a visit by Prime Minister Helen Clark to Mexico, one of New Zealand's largest dairy markets with sales of more than $400 million annually.