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Britain's biggest brewer Scottish & Newcastle Plc is close to appointing current finance director Ian McHoul as its new chief executive after a nine-month search, industry sources reported. McHoul, who became group finance director in July 2001, is the leading internal candidate and has become the firm favourite to be appointed chief executive in an announcement expected in March or April, they added.

"Ian has emerged as the firm favourite after a long and exhaustive search," said one source.

But the move may disappoint some investors who had wanted an external candidate, not so much in the shadow of Chairman Brian Stewart, to shake up the group into selling off all its UK pubs, pay down its debts and look for further brewing expansion.

It is constrained by high debts after buying Kronenbourg and Hartwall in the last three years and the group is suffering from a botched restructuring of its beer depots in the UK, revealed earlier this month.

Scottish announced the search had started last May when it said managing director Guy Dickson would retire at the end of 2002, and added that when a new chief executive was appointed, executive chairman Stewart, 58, would take on a part-time role.

Major rival Belgium brewer Interbrew picked up Cadbury Schweppes' highly regarded chief operating officer John Brock earlier this month.

McHoul was seen as the leading internal candidate for the job ahead of John Dunsmore, the relatively newly installed managing director of Scottish Courage, and John Nicholson, the chairman of the group's international brewing arm. (Reuters)


28 February, 2003