Bay of Plenty Business News June/July 2019

BAY OF PLENTY BUSINESS NEWS June/July 2019
9
Comvita chief executive to step down
Scott Coulter, Comvita’s chief executive for
the past four years, and has been with the
company for 16 years, will step down this
September.
By DAVID PORTER
Former chief executive and
Comvita director Brett
Hewlett is taking on a
temporary executive role to
review the company’s underperforming
assets. Coulter will
retain a governance role in the
manuka honey products company’s
China business.
Chairman Neil Craig said
Coulter’s commitment to Comvita
since joining the company
in 2003 had been outstanding.
“He will be most remembered
for his pioneering work in
developing our market presence
in Australia, United Kingdom,
North America and Asia,” said
Craig in a statement.
“Scott has fostered the
relationship with our Chinese
partners over the past 16 years
and has been a key driver of
Comvita’s success in the China
market.”
The honey company
announced in April that it
would buy out its 49 percent
Chinese joint venture partner
for about $20 million and has
been effectively the sole manager
since April 1.
Time right for change
Coulter told Bay of Plenty
Business News he had chosen
to step down once the Chinese
business became fully owned.
“We have got the China
business over the line and it
is beginning to improve,” he
said. “We’re now looking at
what Comvita requires to get
to the next level.”
Coulter said Comvita was
an amazing business that had
been “a labour of love” for
many years.
“I think it’s time for me
from a personal perspective to
say I’ve done what I needed to
do and what I can,” he said.
Scott has fostered
the relationship with
our Chinese partners
over the past 16
years and has been
a key driver of
Comvita’s success in
the China market.”
– Neil Craig
“I’ve been promising my
family for a long time to spend
more time with them, on the
boat and in the garden.”
Coulter will remain on
Comvita’s China board and
maintain those links, including
a long-standing personal
relationship with the China
partner.
Comvita chief executive Scott Coulter:
Signalling change. Photo/Supplied.
“My role will be to govern
that business, but over time
help whoever comes in as CEO
to build on that relationship,”
he said.
Comvita shares have
fallen around 50 percent since
Coulter took over the top job
in October 2015 and the company
has been struggling with
poor seasonal supply and
other issues.
In February, Comvita
reported a first-half net loss
of $2.7 million, a turn-around
from a net $3.7 million profit
in the previous first half.
Comvita said in a statement
the China business was
trading profitably and was
a key component of a wider
strategic review being undertaken
by the board over the last
12 months.
Hewlett will head a special
purpose board sub-committee
charged with undertaking a
review of the under-performing
assets of the business as
well as structural, balance
sheet, leadership and organisation
considerations.
Specifically, the sub-committee
will examine the possibility
of a more formal separation
between the “brand” and
“supply” components of the
business.
External advisers will be
retained as required to ensure
minimal impact on the day-today
operations of Comvita.
Any decisions resulting
from the review will be
announced at the annual shareholders’
meeting in October,
when the company will also
seek any necessary shareholder
approvals.
“In the interim period, it
is ‘business as usual’ in terms
of retaining a focus on growth
in sales, a continuing search
for improvements in operational
efficiencies and profit
optimisation.”
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