Top Execs Replaced at Tree of Life

AMSTELVEEN, The Netherlands--Koninklijke Wessanen nv, parent company to Tree of Life and other health and wellness brands, has two new executives calling the shots at Tree of Life North America. In Wessanen's press release, the company said that both the chief executive officer (CEO) and chief financial officer (CFO) had been "replaced."

Wessanen reported financial results were lower than expected for the company as a whole for its fiscal 2002 (FY02), partly because of Tree of Life's lower results. Wessanen's FY02 net earnings, before goodwill amortization, exceptional income and expenses, are projected to come in between $37 million and $42 million. Earnings per share fell below what the company had projected for the year, with the company expecting $.53 to $.60 per share earned, rather than the previously expected $.75 per share.

The company is reviewing how the financial adjustments that need to be made in 2002 (results of which will be formally published Feb. 20) will impact 2003 earnings; Wessanen does not expect its previously stated $.86 per share to be met in 2003.

This news came with more company changes. "As a direct consequence, Mac Zondervan, chairman of the executive board, has decided to resign," the company reported. "Mr. Zondervan will not step down before, in the course of this year through an orderly process, a successor has been appointed." Rick Thorne, a member of the executive board, will step into former Tree of Life NA CEO Henry Puente's shoes; Tom Wissbaum took over CFO responsibilities from Dennis Oistacher.

These changes are in line with the company's continued efforts to bolster its wellness strategy. This strategy is directed at consumers with a health- and quality-conscious lifestyle. "The market for wellness foods is constantly growing, which is one of the reasons we are able to continually expand our activities in this area," the company states on its Web site (www.wessanen.com). "We intend to continue strengthening our leading market position by means of above-average autonomous growth and targeted acquisitions. We will achieve these objectives by using our core competencies: marketing and branding, distribution and product development."

In September 2002, Tree of Life NA became Wild Oats' primary distribution partner; the supernatural's sales are estimated to reach $158 million for FY03.