Two young executives to watch on the Chicago business scene made big news Wednesday, with one departing from his company and the other being promoted to CEO at his firm.
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In the more surprising of the moves, Gary McCullough, 45, senior vice president, Americas, at Wm. Wrigley Jr. Co., shocked the company with the announcement that he will leave Wrigley at the end of the week to take the top post at an unidentified company.
And in a move that had been expected, Thomas J. Flocco, 40, was named president and chief executive of Jim Beam Brands. He replaces Rich Reese, who was named chairman and announced his retirement at the end of 2004.
McCullough, a former Procter & Gamble executive who was one of three key outside hires by Wrigley in 2000, had been credited with aggressively reinvigorating the company’s staid marketing for its gum business.
He was an up-and-comer who didn’t mind taking chances in an organization that has been averse to change for many years.
And insiders said that his departure leaves a gaping hole at a time when Wrigley chief Bill Wrigley Jr. is in the midst of working on identifying key acquisition targets.
But McCullough, who was promoted to his current post this year, was passed over for promotion to chief operating officer.
The recently created position was given instead to the company’s top financial executive, Ron Waters.
In the shuffle, Waters, currently senior vice president and chief financial officer, will now have more direct involvement in Wrigley’s operations across its American, European, Asian and Pacific management regions.
The company promoted Reuben Gamoran, vice president and controller, to take Waters’ CFO post, which reports directly to Wrigley.
In announcing the changes, Wrigley dismissed speculation that the moves could be disruptive.
“I feel fortunate that we continue to have such a powerful team in place, owing to the tremendous depth of talent that exists throughout our organization,” Wrigley said in a statement. “As a result, we will not break stride in pursuing our long-term growth goals in the confectionery arena.”
At Jim Beam, Flocco will take the CEO reins from Reese on Jan. 1.
Reese has been with Beam for 30 years. Its brands include its namesake bourbon as well as Vox Vodka and its high-end Knob Creek bourbon.
Flocco has been executive vice president and chief operating officer for the past year. Prior to that, he had been senior vice president of strategy and corporate development for Jim Beam parent Fortune Brands for three years.
Flocco has been spearheading a management turnaround at Beam and was keenly involved in working on a strategic distribution alliance with Absolut.
The strategy going forward is to continue the marketing overhaul, which included hiring new advertising agency BBDO Chicago, as well as to integrate its alliance with Absolut, and a focus on building its business overseas.
“How the brands are presented to the marketplace, that is where we are spending a lot of time right now,” Flocco said in an interview.
Asked whether Flocco sees himself in the post long-term: “I don’t have any designs beyond this. I’m delighted to be here. Rich has left it in great shape. My plate’s full in getting myself under this organization’s belt.”
WPP narrows its sights: Ruling out consolidating all of its Chicago units in current space at 225 N. Michigan Ave., WPP Group, owners of Ogilvy & Mather, J. Walter Thompson, Young & Rubicam and other marketing agencies, has narrowed its search for space to the Merchandise Mart or the former Montgomery Ward Catalog Building at 600 W. Chicago Ave. A decision is expected Friday. Young & Rubicam is not included in the consolidation.
WPP is looking to take at least 250,000 square feet in a new location.
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On the move: The Association of Independent Commercial Producers named Mark Andrew, co-founder and executive producer of Chicago-based The Story Companies, as its new chairman.
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