MGP Ingredients hires ex-Diageo, Pernod executives amid sales slump
MGP Ingredients has recruited four senior drinks executives to arrest a 42% year-on-year collapse in its contract distilling segment and accelerate growth in its branded spirits portfolio.
MGP Ingredients has appointed four drinks industry veterans to senior commercial and financial roles as the US distiller moves to counter a steep decline in its contract manufacturing business.
The hires were announced yesterday, the same day the company reported a 42% year-on-year sales drop in its Distilling Solutions segment to $29.2m for the second quarter. This follows a 40% decline in the first quarter, when sales fell to $28m, indicating sustained pressure on the unit that produces spirits for third-party brands.
To lead the turnaround in this struggling division, MGP has brought in Tom Neiheisel as vice president of sales. Neiheisel brings over two decades of experience from Pernod Ricard, Diageo and Brown-Forman, specifically in bulk sales and contract distillation operations. He will now oversee the Distilling Solutions commercial team, taking charge of sales strategy and business development.
The company is simultaneously bolstering its branded spirits division to diversify its revenue base. Sol Clahane, with more than 30 years in the sector including stints at Pernod and Brown-Forman, becomes managing director of national accounts. She is tasked with expanding distribution partnerships across on- and off-premise national chain channels.
Marilyn Chen joins from Suntory Global Spirits as brand director for the Penelope Bourbon label to lead marketing, innovation and the brand ambassador programme. Rounding out the appointments is David Sanders, who joins as vice president of financial planning and analysis. With 18 years of experience at Southern Glazer's Wine & Spirits and PepsiCo, Sanders will head finance and revenue growth management across the group.
CEO Julie Francis said the new hires "further strengthen our leadership as we execute our long-term growth strategy". For investors, the recruitment drive signals an aggressive management response to a deteriorating core business, leveraging deep industry networks to stabilize revenues.
