Winemaker axes jobs

By Nick Smith

Friday 14th May 2004

Five executive positions in sales and marketing have been axed at Montana Wines in a shakeup of the country's biggest winemaker and exporter.

Spokesman Zirk Vandenberg confirmed the layoffs, which were announced at a snap staff meeting last week, saying three jobs were "at the top executive level."

But two new positions in sales and marketing had been created, and although some had accepted redundancy, others might reapply for the new roles, Vandenberg said.

The shakeup comes as Montana comes under increasing pressure due to the high New Zealand dollar, which Vandenberg concedes played a part in owner Allied Domecq's decision-making.

Analysts said Allied Domecq paid too much for Montana when it spent about $1 billion on the takeover and the rumour mill, working overtime, has it that in a year when a decent return is hard to come by, the company is keen for quick cash.

Vandenberg did not comment on that aspect but denied Allied was about to appoint a new managing director from Europe to replace caretaker managing director, Brian Johnston. Johnston was to hold the role for two or three years and the Australian had even bought a house in Auckland, such was his commitment to the company, Vandenberg said.

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