Top shareholder lashes out after another boardroom shakeup at Stock Spirits
The largest shareholder of troubled Eastern European vodka maker Stock Spirits has reacted angrily after it had yet another boardroom shakeup following a spring and summer of investor dissent.
The London-listed company, which leads Poland's vodka market, said today it had appointed Carlsberg Poland chief executive Tomasz Blawat, Bain & Company adviser Diego Bevilacqua and former Cookson finance director Mike Butterworth as non-executive directors.
Meanwhile, senior non-exec director Andrew Cripps is stepping down, to be replaced by John Nicholson.
But shareholder WesternGate Investments hit out at the moves.
“Stock’s Board now has nine directors – just two short of Diageo, a company that is some 180 times larger," said a spokesperson.
"Today’s announcement also confirms that the two new independent non-executive directors appointed in May 2016 have not been allowed to join any of the four board committees. This ignores the wishes of shareholders that those new directors play a full role in helping to turn the company’s fortunes around.
Today’s statement from the Company also talks about its 'underlying philosophy'. In my view the board should not be spending its time deliberating 'underlying philosophy', but instead be focused on selling more vodka in Poland and cutting unnecessary head office costs."
“It has been approximately two years since the first of the company’s disastrous profit warnings. The share price today remains approximately half what it was before that first warning. We look forward to the forthcoming November 2016 trading statement to see whether the board has spent that two years wisely in turning its business around.”
Share price plunge
The company's shares dived in November last year after it issued a profit warning. Since then, its board has been the subject of rebellions from shareholders, with major investor WesternGate pushing to change its focus back to its core markets and investors rebelling against the handling of two non-executive director appointments in July.
Shares climbed after it appointed new chief executive Mirek Stachowicz in August – although they have since fallen back. This morning they were down 0.5 per cent per cent at 154.25p.
Today chairman David Maloney said new appointees' experience will be "hugely beneficial".
"Stock Spirits has seen a lot of change since its IPO three years ago, and these latest appointments should be taken as a clear sign of the board’s unwavering commitment to improving the business," he said.
"Our team may have evolved but the underlying philosophy remains the same, which is to apply best practice international drinks industry skills to the Central and Eastern European spirits market.”