Anheuser-Busch InBev has begun the search process for replacing long-time CEO Carlos Brito, according to a report Monday in the Financial Times.
The Financial Times, citing three sources with knowledge of the search, reported that A-B is “seriously considering” external candidates and is working with search firm Spencer Stuart. Brito is also said to be helping determine his successor, with a goal of stepping down within the next year and transitioning to a role on A-B’s board of directors.
Although external candidates are under consideration, A-B is looking within, with an eye on one candidate: Michel Doukeris, the CEO of A-B’s North American business unit. Doukeris has been with the company since 1996 and previously led commercial operations in Latin America, Asia and at A-B’s global headquarters.
An A-B spokesperson declined to comment on the report.
The Financial Times noted that chief strategy officer David Almeida and chief marketing officer Pedro Earp — both considered potential successors in the past — are not under consideration.
On the potential of A-B hiring of an external candidate, Credit Suisse analyst Kaumil Gajrawala wrote that the move would signal that the company’s board “ may want to bring-in fresh perspectives – we think the implications of such a move could include; i) a ‘margin reset’ to accelerate investment behind top-line growth and ii) greater focus on diversity across senior management.”
Should A-B choose Doukeris, the company would be committing to “the most credible internal candidate,” one with a track record of premiumization, Gajrawala added.
Doukeris and whomever emerges from the external candidate pool will have to impress a host of shareholders to take over lead operations of the maker of Budweiser, Bud Light, and Stella Artois, among other household beer products. They include the Belgian families who previously controlled Interbrew, the three founders of 3G Capital, tobacco company Altria and the Santo Domingo family, the Financial Times reported.
A scenario also exists in which Brito remains as CEO if a desirable successor does not emerge.
Brito has led the world’s largest beer manufacturer for 16 years, a tenure that has included major acquisitions, from the $100 billion MegaBrew merger with SABMiller in 2016, to building a portfolio of top U.S. craft breweries; the volume declines of Bud Light and Budweiser; and the rise of Michelob Ultra to become the second-best-selling beer in U.S. in off-premise retailers (just behind Bud Light).
Chief among the challenges ahead for whomever is selected is assuming a company with a heavy debt load ($87.4 billion as of the end of June) following the SABMiller merger, which has led the company to sell off its Australian business unit in 2019 in order to pay down debt, and “a lack of sustainable top-line/volume growth,” Gajrawala wrote.
A potential Brito exit would follow the departures of CFO Felipe Dutra this past February and chairman Olivier Goudet in March 2019.