What Fonterra's CEO tells the Dutch

When he was playing rugby at university, Theo Spierings' 1.96m frame was an advantage.

The Dutchman probably doesn't think about it much now, as he leans more towards sailing than rugby, and is kept busy running New Zealand's biggest company, Fonterra.

But for media, Mr Spierings' height is crucial: it makes him easy to spy across a room where, literally, he can be (shaved) head and shoulders above the rest.

Considering Fonterra's fiercely protective PR spin machine, bumping into their ceo is a boon for journalists; a chance to get an unvarnished view of the dairy industry's hot topics, such as the DCD scare, Fonterra's new global headquarters or Chinese companies' plans to build dairy factories in New Zealand.

Mr Spierings, a married father of three who will turn 50 next year, doesn't appear to mind being buttonholed.

The one occasion this journalist did it – during a function in Auckland at which Philippines President Benigno Aquino spoke – Mr Spierings was avuncular, professional and direct.

These qualities shine through in his recent interview he did with Dutch business magazine Management Team, which NBR ONLINE has roughly translated online.

In the story, Mr Spierings reveals he met former Fonterra ceo Andrew Ferrier through his time at Friesland Foods, Holland's big dairy co-operative, which is now Royal FrieslandCampina.

He also consulted to Fonterra in China in 2010.

"I knew ceo Andrew Ferrier well and knew he would leave," he told MT.

"He asked to send me my resume because they also considered external candidates [for the Fonterra ceo job].

"On June 3, 2011, I went to New Zealand for the first time."

His appointment was announced publicly the following month.

Singularly important

Mr Spierings says he under-estimated the strength and importance of Fonterra to New Zealand.

The company's revenue is about 9.4% of the country's GDP and it employs 17,000 people worldwide.

Or as the University of Waikato's Jacqueline Rowarth puts it: "If Fonterra fails, the country will fail."

Mr Spierings says nowhere is the link between country and company so closely intertwined.

"Fonterra is of vital importance for the country.

"It's almost as if you're the coach of the Dutch national football team – everyone is watching, everyone has an opinion and everybody knows it better.

"If the European Football Championship is on, nothing is more important for Dutch."

For Fonterra, of course, the business of the world's biggest dairy exporter goes beyond four weeks.

How does he cope with the extraordinary pressure?

"Everything starts with clarity. Within all my previous positions, I have always clearly explained the direction and strategy – we do this and why.

"That sometimes means you have to be hard, but if you keep stakeholders close to you it does not matter whether the media and politicians find something.

"Look at the Dutch national team in South Africa [during the football World Cup], that was a team where no one would break.

"I see this for Fonterra also."

Clear view

Clarity is something in abundance at Mr Spierings' press conferences.

The lumbering Dutchman has a clear view of how Fonterra should grow, through its so-called strategy refresh – which has a much bigger focus on emerging markets.

He also has a definite view of the co-operative's structure.

There have also been myriad management changes and job cuts announced, in the wake of the $525 million Fonterra Shareholders' Fund float.

Continuing the football theme, perhaps Mr Spierings sees himself as a caretaker manager brought in to turn around the flagging fortunes of his team, with free rein from the owners to try people in different positions.

He tells MT: "Fonterra was structured like Philips, with separate divisions.

"But I do not believe in that because in a co-operative there are links between the milk and other resources throughout the company level.

"That's why I wanted to get rid of the divisional structure and I changed the organisation to a wider team with a business."

As part of his drive to turn Fonterra into a global powerhouse, Mr Spierings recently signed a cheese factory partnership with a Dutch company and the dairy giant says it is seeking partners in China.

More of that appears to be on the way, he told MT Fonterra is on the lookout for potential merger and acquisition candidates.

Mr Spierings is held up as somewhat of a pioneer in corporate social responsibility – especially during his time in Peru and Nigeria – in countries where the government struggled to provide for its people.

He says this is his approach in New Zealand with Fonterra's milk in schools programme and the company's drive to fence off waterways.

"You would not expect it, but there is much poverty [in New Zealand]."

dwilliams@nbr.co.nz