Australian Vintage Limited (AVG) has announced that CEO Craig Garvin is leaving the company with immediate effect. This information was revealed in a publication by the company for its investors and the Australian Securities Exchange (ASX) on May 3, 2024. As a result, Peter Perrin, previously a non-executive director of AVG, is introduced as the new interim CEO. AVG states that this personnel decision does not affect the exploratory discussions regarding a potential merger with Accolade Wines. These discussions will proceed with the outcome remaining uncertain.
'Lack of Judgement'
The board terminated Craig Garvin's employment after careful consideration and discussion with Garvin himself, as his conduct demonstrated a 'lack of judgment' and was deemed incompatible with the company's values. Garvin will be paid his accrued entitlements along with a contractual severance package. His currently held shares in trust will be released from the trust and transferred to him.
"The board acknowledges Craig for his service over the past four years and the contributions he has made to the company during this time. This includes steering the company through the challenges of the Covid-19 pandemic and developing and implementing the company's five-year strategic plan, which transformed AVG into a consumer-focused brand company committed to innovation. While we are disappointed by the circumstances leading to his departure, we believe this decision is in the best interest of the company and its stakeholders. The board remains committed to upholding the highest standards of behavior and accountability for all employees, including leadership," says Richard Davies, Chairman of AVG.
Global search for CEO in progress
The new CEO, Peter Perrin, is set to take on the position only on an interim basis, as a comprehensive global search for a new CEO has been initiated, it is stated. According to AVG, Perrin brings considerable expertise, having worked as a manager and director in various wine companies across Australia, the United States, and New Zealand, accumulating 40 years of experience in the wine industry. Additionally, he currently serves as the Chairman of AVG's Risk and Sustainability Committee and is a member of the Personnel, Remuneration, and Culture Committee.
Craig Garvin had been CEO at AVG since late 2019, having joined from dairy group Parmalat. According to The Australian Financial Review, he is reportedly considering legal action regarding his dismissal.
