Drinks giant SABMiller became the second blue-chip company this month to go against the City code on management succession, as it announced Chief Executive Graham Mackay will move up to become Chairman.
Meyer Kahn will retire as Chairman after 46 years of service with the group. Graham Mackay will become Executive Chairman, before becoming Non-Executive Chairman at the annual general meeting in 2013. Alan Clark will be appointed as Chief Operating Officer with the intention that he will succeed Graham Mackay as Chief Executive at the annual general meeting in 2013.
In addition, John Manser, who joined the board in 2001, will become Deputy Chairman of the board, and Rob Pieterse, who has been with the firm since 2008, will retire as an independent non-executive director.
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SABMiller's home market is South Africa so it is unlikely to lose much sleep over upsetting the City's investment community, which frowns on Chief Executives moving up to become Chairmen. Earlier this month, oilfield support services firm Wood Group said its Chief Executive Officer, Allister Langlands, would succeed Chairman Sir Ian Wood when he retires in November.
The market seemed more concerned with raising a glass to SABMiller's current trading, which looks good.
On an organic basis lager volumes in the April-to-June quarter were five per cent ahead of the prior year and soft drinks volumes were six per cent higher.
Organic constant currency group revenue grew by eight per cent for the quarter, with group revenue per hectolitre up by three per cent on the same basis, reflecting selective price increases and an improved mix in most regions.
Including the effect of acquisitions and disposals, total volumes were up 10% compared with the corresponding quarter of the prior year. The group's financial performance for the quarter was in line with its expectations.
In Latin America, healthy growth continued with lager volumes up six per cent, mainly driven by pack innovation across its mainstream brands.
In Central America, lager volumes grew by seven per cent with continuing pack initiatives in Honduras and El Salvador and strong consumer marketing campaigns. Soft drinks volumes improved by three per cent with a strong performance from its non-alcoholic malt brands, supported by recent introductions in Colombia and Central America and the roll out of mini packs.
In Europe, lager volumes were up seven per cent on an organic basis, boosted by an 11% rise in Poland, as the market benefited from the Euro 2012 tournament.
MillerCoors' US domestic sales to retailers (STRs) were down 1.4% in the quarter, while Premium light STRs were in line with the prior year as low single digit growth in Coors Light was offset by a low single digit decline in Miller Lite.
Africa delivered a strong performance with lager volume growth of nine per cent on an organic basis, despite cycling strong comparatives. Lager volumes in Zambia grew by nine per cent, supported by robust growth in mainstream brands and continued favourable economic conditions.
Lager volume growth of 12% in Mozambique was underpinned by a renovated mainstream brand portfolio, greater availability in the north of the country and growth of Impala, its cassava-based beer launched in November 2011. Soft drinks volumes grew by nine per cent on an organic basis with good performances in a number of its markets.
The share price rose 2.75% to 2,710.50p by 12:25.
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