Three outside directors have been named to the board of Bacardi Ltd. in a move which has been seen as a key step if the company decides to sell its shares to the public.

And Javier Ferran will now become chief executive officer of the Bermuda-based company after a transition period which ended with yesterday's annual general meeting.

Chairman Ruben Rodriguez said the new board members were:

Andreas Gembler, president and chief executive officer of Philip Morris International from 1997 until 1999; Guy Peyrelongue, president and chief executive officer of L'Oreal USA and Chairman of L'Oreal Canada from 1987 to 2001; and

Ray Silcock, the executive vice president and chief Financial Officer of Cott Corporation in Toronto.

In May, more than two-thirds of the shareholders agreed to allow the issuance of new shares beyond the 23.5 million currently held by about 600 family members. It will still take a second shareholder vote before any new shares could be sold through the public market or issued in a private transaction.

The Miami Herald reported yesterday that Bacardi's performance was mixed in the year ending March 31.

The newspaper, which obtained a copy of the company's annual report, said Bacardi posted record sales of $3.1 billion driven by a strong euro exchange rate, new product introductions, and growth of the ready-to-drink product segment such as Bacardi Breezers.

“But because the sales mix included more products with lower margins, Bacardi's net earnings dropped 14 percent, declining from $456 million last year to $390 million.

“These declines come after four years where Bacardi's consolidated annual growth hit 16 percent, making it the industry leader,” the Miami Herald said.

The idea to add outsiders to the Bacardi board is part of a continuing effort by Rodriguez to improve the corporate governance of the family-owned company.

“That's a pretty radical change in direction for Bacardi,” Michael Bleakley, a spirits industry analyst with Credit Suisse First Boston in London, told the Miami Herald. “They're obviously sharpening their pencils and getting the business more aligned with the requirements of the Street.”