AB-InBev names US boss Michel Doukeris as new CEO

Belgium | The rumour mongers were right: Carlos Brito, who built AB-InBev into the world’s major brewer, will step down as CEO in July as the firm shifts its focus from acquisitions to organic growth. The Financial Times newspaper was the first to spread this rumour in September 2020.

The brewer of Budweiser, Corona and Stella Artois said on 6 May 2021 that its board had unanimously elected Michel Doukeris to succeed fellow Brazilian Brito, from 1 July. The succession process had been “rigorous and robust,” it added.

Chairman Martin Barrington said Mr Doukeris’ expertise in brands, consumers and innovation meant the 48-year-old is ideally suited for the company’s next phase. Joining the firm 25 years ago, he has held several commercial operations roles in Latin America, led its operations in China and Asia Pacific for seven years and moved to the US in 2016.

Doukeris has his work cut out

He will lead a shift to investing in brands, away from M&A and cost control that defined his predecessor’s 17-year tenure. But any stumbles will threaten AB-InBev’s plan to halve its debt.

Investors seems to appreciate AB-InBev’s management succession. AB-InBev’s shares rose around 5 percent the same day.

Mr Brito, who turned 61 on 6 May, will leave the company after more than three decades. He was appointed to the top job when the brewer was called InBev, the result of a 2004 merger between Belgium’s Interbrew and Brazil’s AmBev, which he headed.

During his tenure, the company took over Anheuser-Busch in 2008, added Mexico’s Grupo Modelo and in 2016 spent USD 120 billion on SABMiller, then the world’s number two brewer.

The acquisition brought more Latin American markets under AB-InBev’s wings and saw it enter Africa for the first time. However, the purchase also saw AB-InBev’s net debt jump to USD 83 billion as of the end of 2020, some 4.8 times core earnings (EBITDA). Currently, its shares are worth less than half their 2015 peak.

First quarter results

The company separately reported first-quarter 2021 results ahead of expectations, even with lockdowns closing hospitality in much of Europe and a one-month alcohol sales ban in South Africa.

Per Reuters, sales of beer surged 64 percent in Asia-Pacific, a year on from the initial coronavirus lockdown in China, a major AB InBev market. They rose by more than 10 percent in Latin America, outperforming industry growth in two of its top markets, Brazil and Mexico. In Europe, sales of its own beers were flat.