Speculations about an imminent departure of beer giant AB InBev‘s chief executive, Carlos Brito, are on the rise again. Brito declared in October that he would ”not be gone yet”, but in the run-up to the annual general meeting in April, the name of his potential successor sounds a bit louder.
Michel Doukeris in pole position
Let us recapitulate briefly. The Financial Times published the first rumours on the departure of, now 60-year-old, Brito in September last year. The Financial Times had picked up, from various sources, that a headhunter had been hired to look for a successor both internally and externally.
In keeping with the spirit of the house, AB InBev kept its lips sealed. That is until Brito himself put an end to the rumours at the presentation of the third-quarter results. At that point, suddenly, it seemed he would stay at the helm for “many more quarters”. A remarkable move, given that AB InBev does not usually react to what it calls “market rumours”. By refuting the story on the record, Brito seemed to want to signal that none of it was true.
But that did not prove to be enough to stop the rumours. In the run-up to the general meeting of 28 April, rumours about Brito’s successor are once again going around. Unsurprisingly, Michel Doukeris’ name gets mentioned again.
Continuation of the corporate culture
Doukeris is currently in charge of AB InBev’s North American division. He has been the internal candidate to succeed Brito for years. He is well-liked by AB InBev’s major Brazilian shareholders and would be the ideal blend of maintaining the current company’s culture while delivering a turnaround.
For the latter, he can provide credentials from the North American market, where he has had some trouble restoring revenue growth. AB InBev has struggled for years in the American market. The market for traditional lagers, such as Budweiser and Bud Light, consistently declined, while the market for craft beers – in which AB InBev was underrepresented – flourished.
Hard seltzers
Doukeris took over the craft beer segment but achieved its long-awaited turnaround precisely through a product that was more on the fringe of the beer industry: hard seltzers. These are light alcoholic drinks made from fizzy water, alcohol and fruit flavourings.
We will have to wait until 28 April to be sure about the changing of the guard at the top of AB InBev. However, if the latest whispers hold, more rumours are likely to leak before then. The current story assumes a succession announcement, followed by a transition period. Later this year, Brito would then step down as CEO.
