By Jennifer Maloney
This article is being republished as part of our daily
reproduction of WSJ.com articles that also appeared in the U.S.
print edition of The Wall Street Journal (November 14, 2017).
Anheuser-Busch InBev NV is shuffling the leadership of its North
American business, putting another company veteran from Brazil in
charge of the largest U.S. brewer as it struggles to end a long
slump in sales of Budweiser and Bud Light.
Michel Doukeris, chief sales officer for the global brewer, will
take the helm of the U.S. subsidiary, Anheuser-Busch, on Jan. 1,
succeeding João Castro Neves, who has run the division since 2015.
Mr. Castro Neves, 50 years old, is leaving after 22 years at the
company "to pursue other opportunities," AB InBev said.
The shake-up includes a handful of other executive changes,
including the promotion of a PepsiCo Inc. alum and former U.S.
intelligence officer, Brendan Whitworth, to vice president of sales
for North America, succeeding Brazilian Alex Medicis.
AB InBev's sales in the U.S. have fallen as Americans shift away
from domestic lagers toward craft beers, Mexican imports, wine and
spirits. The company's share of the U.S. beer market, its largest,
fell to 44.1% in 2016 from 50.6% in 2008, according to research
firm Euromonitor International. That slide has continued this year,
especially for its biggest seller, Bud Light.
The management changes mark a new phase for the company's U.S.
operations, said Carlos Brito, chief executive of the Belgium-based
behemoth. The first phase, after InBev's 2008 takeover of
Anheuser-Busch, was aimed at cutting costs and paying off debt. The
second focused on expanding the portfolio with craft beers and
growing higher-end brands such as Stella Artois and Michelob Ultra,
Mr. Brito said.
"Now, we're going to have a more commercially minded person at
the head of the business" with a background in sales and marketing,
Mr. Brito said in an interview. The new chief's mandate: to boost
revenue.
Mr. Doukeris, a 44-year-old Brazilian, joined the company in
1996. He worked as vice president of soft drinks for Latin America
before moving to China, where he rose to become head of the
company's Asia-Pacific operations in 2013. He is currently based in
New York.
The new Anheuser-Busch chief said he aims to increase speed to
market and pledged to invest more in data and analytics to do more
targeted local and regional marketing. "We need to understand the
consumer needs, " Mr. Doukeris said in an interview.
Mr. Doukeris and Mr. Brito said they would continue to develop
the brewer's portfolio to offer brands that work for different
occasions and didn't rule out further acquisitions. The company is
still digesting its $100 billion merger with SABMiller last year,
which lessened its reliance on the U.S. market.
AB InBev has been unable to arrest a nearly two-decade decline
in Budweiser sales, even as it has moved aggressively to expand
Budweiser distribution around the globe.
At the same time, its profits have increased. North America is
the biggest profit contributor for AB InBev, with the U.S. and
Canada contributing about a third of profits, according to
analysts.
The world's largest brewer was built by a group of Brazilian
businessmen who brought a private-equity approach to the industry.
It grew into a global giant through deals for Anheuser-Busch, Grupo
Modelo and most recently SABMiller. The company has proved adept at
acquiring businesses and cutting costs but has struggled to
increase its share in key markets.
Retail store sales of Bud Light, the No. 1 U.S. beer brand by
volume, fell 5.7% this year through Oct. 21, according to Nielsen
data compiled by Beer Marketer's Insights.
Wholesalers, industry observers and former Anheuser-Busch
executives have faulted the company for frequent changes in its Bud
Light marketing campaigns, high turnover in its brand leadership,
and a lack of understanding of U.S. culture among those in charge
of reviving an iconic American beer.
AB InBev in March addressed some of those concerns with the
announcement that Andy Goeler, a three-decade Anheuser-Busch
veteran, would return to the helm of Bud Light, a brand he led in
the 1990s.
Mr. Brito said that for a brand so large, "it is sometimes a
challenge to find the right tone. You need to appeal to a large
group of consumers, but you need to have a target audience to
really focus your communications. So how do you do that without
alienating people?"
"Today with Andy Goeler, Bud Light, I'm sure, will be in a much
better place," Mr. Brito said, adding that he is optimistic about
the brand's two current campaigns emphasizing friendship and the
quality of the beer's ingredients, and its recent push to court
Hispanic consumers. "Of course, if you have people that understand
the local culture and understand the business and love the
company...this is a great combination."
Noting that Mr. Doukeris has a record of developing "local
talent" in China, Mr. Brito pointed to the promotion of Mr.
Whitworth, who joined AB InBev in 2013 after five years in
PepsiCo's Frito-Lay division. Mr. Whitworth, 41, previously served
as a U.S. Marine Corps officer and as an operations officer for the
Central Intelligence Agency's clandestine service, according to his
LinkedIn page.
Write to Jennifer Maloney at jennifer.maloney@wsj.com
(END) Dow Jones Newswires
November 14, 2017 02:47 ET (07:47 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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