New Fonterra CEO tipped to bring fresh approach

New Fonterra chief executive Theo Spierings. Photo / Supplied

Evolution not revolution lies behind the appointment of Dutchman Theo Spierings as the boss of dairy giant Fonterra, says chairman Sir Henry van der Heyden.

Spierings will take over from Andrew Ferrier on September 26 as chief executive of the dairy co-operative, which posted revenue of $16.7 billion for the year ended July 2010.

Spierings would bring new ideas and a fresh approach within Fonterra, van der Heyden said.

"It's just evolution of the company, it's definitely not revolution," he said.

"Andrew's done a very good job getting it to where we are today ... a single integrated business, everyone knows where they're going," he said.

"I just think Theo will bring a new approach to some things, new ideas and drive the business to the next stage."

Spierings, 46, was acting chief executive of Dutch dairy co-operative Royal Friesland Foods and in 2008 led the company into a merger with Campina, creating Royal FrieslandCampina.

He currently lives in the Netherlands and runs his own company, which focused on mergers and acquisitions in fast-moving consumer goods.

Spierings had worked in and understood Asia, van der Heyden said

"He's done quite a bit of work since leaving Friesland in China," he said. "China's an important market to us, so he's got strong relationships there."

Spierings had experience in managing dairy businesses across Asia, Latin America, Africa, the Middle East and Europe.

"Everything that he's done he delivered very good numbers, both growth and profit," van der Heyden said.

"It's that global experience, worked in market, understands co-operatives, understands farmers, believes in an integrated business model and he's actually implemented and executed a very difficult merger."

Fonterra had used a search firm to help find its next chief executive and there had been a lot of people interested, both internal and external.

"For me it's got to be the best person for the job and if that's an internal candidate, that's a New Zealander, that's fantastic but they're going to get benchmarked with the best people around."

Fonterra had work to do to connect with New Zealand, had to drive more profit in the business as it moved down the track of capital structure change "and of course we're a farmer co-op, milk price is fundamental too", van der Heyden said. "Those are three areas, they will be Theo's priorities."