E-Malt.com News article: South Korea: AB InBev names new CEO for Oriental Brewery

Anheuser-Busch InBev (AB InBev), the world's largest brewer, has named a new CEO for its Korean unit, Oriental Brewery (OB), while appointing former CEO Chang In-soo to a newly established vice chairman post, The Korea Times reported on November 20.

The move is largely seen as an effort to solidify AB InBev's control of the nation's largest brewer and create synergy with its units in other countries. In April, AB InBev acquired OB, which accounts for about 60 percent of Korea's beer market, for $5.8 billion.

OB said on November 20 that Frederico Freire, 43, former vice president of AB InBev's Asia-Pacific regional headquarters in Shanghai, will come to Korea to take the helm. Freire, born in Brazil, has been with the brewer since 1996, serving in various posts in sales, marketing and procurement.

"I am happy to be part of the OB family which has successfully transformed the company into Korea's No.1 brewer," Freire was quoted as saying by the company. "I will do my best to further strengthen OB's competitiveness and help it achieve sustainable growth by making the best use of AB InBev's global network and advanced production knowhow."

Former CEO Chang In-soo is expected to remain part of the firm's management team as vice chairman, according to OB. Chang will likely continue to play a crucial role in building and maintaining the firm's sales network, as well as helping the new CEO understand the Korean market.

A person familiar with the matter, who declined to be named, said that AB InBev cannot afford to lose Chang because he is the one who has led OB's success over the past few years. ''I think Chang will continue to remain active. He will play an important role in sales and marketing, as well as advising Frederico about the Korean market. OB needs Chang's knowhow and expertise."

He then said it is not uncommon for AB InBev to send one of its inside men to take control of OB. "This is what happens in the business world. This has long been predicted because Chang had a hard time communicating with people at AB InBev because of his poor English. AB InBev has been seeking to make OB part of its global family since April. To do so, it definitely needs its man at the helm of OB."


21 November, 2014