New Lion boss here for more than beer

By Geoff Senescall

Lion Breweries' new managing director, Roger North, openly admits he was sacked from his previous job.

"It's true, I didn't want to go," he said on a visit to Lion Breweries' Auckland offices yesterday before starting his new job on September 1.

But then again, Mr North had been through a lot during eight years as chief executive of Ushers of Trowbridge in Britain.

Mr North said he bought the brewery with the support of venture capitalists in 1991 and built the business up from "nothing" to one producing sterling 80 million a year turnover and sterling 18 million profit before interest and tax.

Mr North then floated Ushers onto the London Stock Exchange in 1997. But because it was relatively small, with a market capitalisation of around sterling 120 million, he said that it quickly became a takeover target.

Mr North said he did not want to lose the company so he decided to take it private, bringing in venture capitalists Alchemy Partners, whom he knew well. "I felt we could work together." But Mr North said that the ink was not dry on the paper when Alchemy decided to back another company into Ushers. "We had some discussions but it was obvious that they needed someone different to take the company forward."

They wanted to take Ushers down a route with less emphasis on brewing and brands, Mr North said "At that point, they had 80 per cent of the votes and I only had, between me and my directors, 20 per cent." End of story.

It was only a matter of days following his departure from Ushers that Mr North was approached by Lion. At 57, Mr North still felt like a challenge. He came to visit Lion in June and took the job. Mr North was already familiar with Lion. Ushers had brewed Steinlager in Britain under licence since 1995.

Mr North said he was still learning about the New Zealand business. "But I know enough about beer. Beer is a great love of mine ..."

He was aware that the beer market in New Zealand was in "gentle decline." But that was also the case in other markets. "People are drinking better quality beer but less of it." But while the bulk beers were in slight decline, the market was not going to go away, he said.

"The skill if you are in the liquor business is to regard it as a liquor business so there are other things; there are other products that bridge the gap so you can manage the mainstream product. You can introduce new users to beer through innovation and they then end up drinking the mainline products."

As far as markets globally went, Mr North said New Zealand was reasonably stable. Lion had a predominant market share and a very loyal following for its brand.

"I am going to bring some leadership and enthusiasm. It is very easy if you are a leader in a market to have a tendency to assume the world owes you a living. So service levels are key to me. I have always been in markets where I have had to fight on service for share.

"I also bring a fresh look at what beer is about and how it is evolving in more mature markets. Consumers actually drive the product these days and people are becoming more fussy. They want the product range and you have to give it."

Mr North believed that Lion had the skills to brew niche beers to cater for changing demands.

Prior to Ushers, Mr North was managing director of Grand Metropolitan Brewing in Britain. But his background was not just in brewing. He was chief executive of Imperial Foods, the foods division of Hanson, between 1987 and 1989, and chief executive of Hanson Engineering Industries from 1983 to 1987.