AB InBev to replace chair amid conflict of interest concerns
Olivier Goudet to stand down from world’s biggest brewer as his JAB role grows
Anheuser-Busch InBev, the world’s biggest brewer, plans to replace chairman Olivier Goudet next month amid concern that his role at acquisitive investment group JAB Holdings has become a conflict of interest.
People with direct knowledge of the decision said Mr Goudet, managing partner of JAB and chairman of AB InBev since 2015, would step down and a new chairman would be announced at the company’s upcoming shareholder meeting on April 24.
One person said last year’s JAB acquisition of Keurig Dr Pepper, the coffee and fizzy drinks maker, had raised concerns on the brewer’s board that its holdings had become too close to those of AB InBev, which makes Budweiser and Stella Artois beers.
Beer companies are increasingly expanding into other categories of drinks such as spiked seltzers, or alcopops, or non-alcoholic beverages to blunt the decline of mass-market lager.
JAB Holdings, which manages the wealth of Germany’s billionaire Reimann family, has been on a $50bn-plus dealmaking spree over the past several years that has turned it into a challenger in a number of consumer industries, including beverages.
Mr Goudet confirmed that he was stepping down to “devote more time” to his “growing responsibilities as managing partner and CEO of JAB”.
“I have been privileged to serve on the board…and have been very impressed by the quality of the company’s management and I have tremendous confidence in the future our business,” said Mr Goudet.
A spokesman for JAB confirmed Mr Goudet was stepping down from the AB InBev board but said it was to “devote more time to his growing responsibilities as managing partner and CEO of JAB”.
Mr Goudet, who had a year left on his five-year term as chairman, is one of just three independent directors on AB InBev’s 15-strong board. The other positions are held by representatives of the brewer’s biggest shareholders, who control a combined 51 per cent of its voting rights.
“We are extremely grateful for Mr Goudet’s many contributions and commitment to our company over the eight years as member of the board and four years as chairperson,” said an AB InBev spokesman.
The shareholders include the three founders of Brazil’s 3G Capital — Jorge Paulo Lemann, Carlos Alberto Sicupira and Marcel Herrmann Telles — and a trio of wealthy Belgian families. A further 9.6 per cent and 5 per cent are respectively held by tobacco group Altria and Colombia’s Santo Domingo family.
Mr Goudet’s departure will also mark an end to what has been a close relationship between 3G’s Brazilian trio, which orchestrated the deals that created AB InBev, and JAB. Mr Goudet’s fellow managing partner at JAB, Peter Harf, previously served as chairman of the brewer for nearly a decade before stepping down in 2011.
The search to replace Mr Goudet began last year soon after JAB expanded its bet on coffee and beverages by merging Keurig Green Mountain with Dr Pepper Snapple, the fifth-largest soft-drinks maker globally.
The board tapped a recruitment firm to find a candidate, and Mr Goudet took part in the selection process along with the other independent directors.
“The board’s succession plan has been developed since last year and we have been working with Mr Goudet on a smooth transition,” said the AB InBev spokesperson. “His successor, along with new members of our board, will be announced in due course in the context of our annual shareholders meeting.
The shake-up comes as AB InBev is trying to win back investor confidence after a tough period that saw its shares crater last year. Investors are worried about the brewer’s heavy debt load, which sits at $102.5bn after its 2016 acquisition of SABMiller.
AB InBev’s efforts to meet investor demands were slowed considerably last year when emerging markets currencies weakened against the dollar. The company responded by cutting its dividend payout by half in October. It is also considering whether to sell a minority stake in its Asian operation through an initial public offering later this year, according to people with knowledge of the deliberations.
The moves have helped AB InBev shares in 2019. So far this year, they are up 23 per cent to €71.65. However, its stock trades well below its high of €122.50 reached in late 2015 just after inking the takeover of SABMiller.