Fonterra rings in the changes

Jay Waldvogel's has been contemplating returning to the US. Picture / Richard Robinson

Fonterra chief operating officer Jay Waldvogel has lost his job in the latest management shake-up at the giant dairy company.

Waldvogel was among the top four executives at Fonterra and had filled in as chief executive for two months in 2003 before the arrival of Andrew Ferrier.

A native of Wisconsin, he settled in New Zealand in 2000 to head Fonterra's global ingredients marketing team. He was made chief operating officer in 2002.

Ferrier said Waldvogel had made it clear for some time that he was contemplating a move back to the US and that contributed to the thinking behind the changes.

A Fonterra spokesman said the company would not comment on Waldvogel's redundancy package.

The big winner in the management re-shuffle is John Shaskey, now director of networks. He has been appointed managing director of Fonterra ingredients, the company's biggest division, and will report directly to Andrew Ferrier. The creation of his position brings the structure of the ingredients business into line with its other major division - consumer business Fonterra Brands.

Other changes unveiled yesterday include strengthening the innovation division and the creation of a new specialty products business.

This is the second time Ferrier has initiated major management changes. In December 2003, three of Fonterra's most senior managers lost their jobs as the company's business was centralised at its downtown Auckland headquarters.

Structural Rejig

Chief operating officer Jay Waldvogel's position is "disestablished".

Fonterra's ingredients business gets a managing director who reports directly to the chief executive.

The Palmerston North-based marketing and innovation division has been beefed up and renamed Fonterra Innovation.

A new speciality products business has been created.