Anheuser-Busch InBev shares rose more than 6% in midday trading on Thursday. This announcement was made after the Bud Light brewer announced that CEO Carlos Brito will step down, effective July 1.
Michel Doukeris, who currently serves as the head of the company’s North American business, will take the reins from Brito. Barclays analyst Laurence Whyatt said that the CEO announcement will allow investors to reformulate views on a company that appears to be at the start of a positive transition. Anheuser-Busch InBev reported its first-quarter earnings, topping Wall Street’s estimates despite lockdowns outside of the United States. Revenue rose 17.2% to $12.3 billion as the company faced comparisons with last year when bars and restaurants began closing temporarily due to the pandemic.
In recent times there is a drop in the consumption of beer and consumers opt for substitutes like hard seltzer or choose to drink less or not at all. Anheuser-Busch InBev has added new products, like Bud Light Seltzer, to adapt to changing tastes. The Shares of the company have risen 7% so far this year, giving it a market value of $127 billion.
Jefferies analyst Edward Mundy wrote that Doukeris brings a strong premium focus to the company. He implemented the high-end division in China. He also has experience with e-commerce. The successor for Doukeris’s current role will be named before July.