Kerry Group's chief executive, Mr Denis Brosnan, has sprung a surprise with his decision to stand aside as managing director and take over as chairman of the foods group next January when current chairman Mr Michael Hanrahan retires.

Current deputy managing director Mr Hugh Friel will take over from Mr Brosnan and it is likely there will be some further additions to the number of executive directors as Kerry gears up for expansion.

Mr Brosnan said yesterday that, when Mr Hanrahan indicated his wish last year to step down when he reached 70, the board and Mr Brosnan felt it would be an opportune time for him to take over as chairman and Mr Friel as managing director. Mr Brosnan said he originally had planned to retire as managing director in three years when he reached the age of 60 but that Mr Hanrahan's retirement allowed the process of restructuring the board to be speeded up.

Mr Brosnan could not detail at this stage his exact involvement in Kerry's day-to-day activities when he became a non-executive director. Industry sources believe he is likely to remain deeply involved in Kerry's expansion in the years ahead and that he will be far more involved on a day-today basis than Mr Hanrahan, a Kerry farmer who has been non-executive chairman of the group for the past 10 years.

Mr Friel (56) said: "I don't think it's written in stone when I will think of retiring." Mr Brosnan added: "It will be the thirty and forty-somethings who will manage Kerry in the next decade. Hugh and I have to take the company forward in the current decade and the next generation will take over from then."

When Mr Friel does think of retiring, and market sources speculate he will remain as managing director for four to five years, one of the "next generation" of Kerry managers will take over. The sources suggested that the head of Kerry's ingredient business in the Americas, Mr Stan McCarthy - who is the most recent executive addition to the Kerry board - is the likely favourite.

On Kerry's expansion over the next few years, Mr Brosnan said there were no major opportunities of a billion dollar-plus and that Kerry's expansion was likely to be based on smaller but still substantial acquisitions of about $100 million (€110 million).