Diageo is reportedly considering selling its Chinese assets as part of a strategic review under its new chief executive, Dave Lewis. The owner of Guinness and Johnnie Walker has enlisted Goldman Sachs and UBS to assess operations in China, where sales have been declining. Key assets include a majority stake in Sichuan Swellfun, a baijiu distributor whose shares have fallen sharply over the past year.
Lewis, who took charge in January after leading turnarounds at Tesco and Unilever, is known for aggressive portfolio trimming. Diageo faces mounting pressures from weak Chinese demand, high debt, shifting consumer habits, and the impact of US tariffs under Donald Trump. The potential China sale follows last month’s agreement to sell its stake in East African Breweries to Asahi Group, signalling a broader retreat from non-core markets. Lewis succeeded Debra Crew after a turbulent period marked by profit warnings and supply issues, including a high-profile Guinness shortage in the UK.
