SABMiller (SAB)’s John Bowlin, incoming President and CEO of the Miller Brewing Company, is resigning, to be replaced by Norman Adami, currently chairman and managing director of South African Breweries ltd (SAB), effective from Feb. 1, 2003, SABMiller said in an announcement to the JSE Securities Exchange SA on Tuesday.
The move is not an unexpected one, as Bowlin has been under pressure to reduce costs and increase profitability and sales at Miller since its merger with SAB last year. The US brewer has been losing market share to Anheuser-Busch, the country’s largest brewer.
SABMiller is the world’s second largest brewer by volume. South African Breweries plc acquired Miller Brewing Company from Philip Morris Inc in July 2002 in exchange for 430-million shares, worth $4,993-billion at the time of the agreement. On completion, the company changed its name to SABMiller plc.
SABMiller is listed on the London and Johannesburg stock exchanges and has a market capitalisation of $7-billion (approximately R60-billion).
The group’s shares moved lower subsequent to the news, currently trading at R61,95 from R62 just before the announcement, but on the day were up 2,3% or 40 cents from R60,55 at Monday’s close.
Commenting on the move, SABMiller CEO Graham Mackay said: “I would like to thank John for his contribution to the Miller Brewing Company since April 1999, and I also note his 28 years of distinguished service to the Phillip Morris Group”.
John Bowlin said: “Over the last four years we have made a lot of progress and achieved some major improvements in the efficiency and competitiveness of Miller. I have been privileged to lead a very professional and talented management team and have every confidence that Miller will grow from strength to strength under Norman’s leadership.”
At the same time, SABMiller said that in Europe Mike Simms, managing director of SABMiller Europe, who had for some time indicated a desire to take early retirement, would relinquish this position with effect from April 1, 2003. He would then undertake various strategic projects before retiring in August 2003.
Dr Alan Clark, currently Managing Director of Amalgamated Beverage Industries Ltd (ABI), would take over from Simms with effect from April 1.
Tony van Kralingen, currently managing director of Plzensky Prazdrojas, the SABMiller subsidiary in the Czech Republic and owner of the Pilsner Urquell brand, would take over from Norman Adami in South Africa with effect from February 1, 2003.
In due course, SABMiller said, appointments of Managing Directors for ABI and Pilsner Urquell would be announced, as would that for Kompania Piwowarska in Poland to succeed Trent Odgers, who was recently appointed to head the group’s Central American operations. ‒ I-Net-Bridge