Leadership shake-up to reverse falling performance
Global drinks powerhouse Diageo has named former Tesco chief executive Sir Dave Lewis as its new leader. He will assume the role on 1 January, following the summer exit of Debra Crew, who led the company for two years. The move comes as Diageo struggles with declining sales across much of its portfolio, even as Guinness continues to perform strongly. After the announcement, Diageo’s shares jumped 7% in early trading, recovering slightly from a 10-year low.
Tough markets challenge global brands
Diageo, owner of Johnnie Walker, Smirnoff and Captain Morgan, has been hit by weaker demand in key markets, particularly the United States and China. Sir Dave brings deep experience from his years at Unilever and his six-year tenure as Tesco’s chief executive, where he gained a reputation for bold, decisive action. He will leave his position as chairman of health firm Haleon to take the reins at Diageo. The company’s board said his experience made him “the right choice at a crucial time.”
‘Drastic Dave’ returns to fix another giant
Known as “Drastic Dave” for his firm leadership and willingness to make tough decisions, Sir Dave said he saw both problems and potential ahead. “The market faces some headwinds, but there are also significant opportunities,” he said. “I look forward to working with the team to face these challenges and deliver value for our shareholders.”
Falling profits heighten urgency
In the year to June, Diageo’s operating profits dropped 28% to £3.2 billion compared with the previous year. The company described the period as “challenging” and acknowledged there was “much more to do.” Inflation and higher living costs have forced consumers to cut back on social spending, including dining and drinking out. Younger generations are also drinking less alcohol, putting pressure on traditional beverage brands.
Analysts expect swift reform
Analysts say Sir Dave will need to act quickly to restore momentum. Dan Coatsworth, head of markets at AJ Bell, said, “He listens carefully to customers and suppliers to understand what’s gone wrong. His immediate task will be repair work, not expansion.” Coatsworth added that Sir Dave left Tesco after stabilising it, rather than pushing for rapid growth, suggesting a similar short-term strategy may guide his work at Diageo.
Experienced hand takes over
Sir Dave replaces interim chief executive Nik Jhangiani, Diageo’s chief financial officer, who stepped in after Debra Crew resigned in July. With his reputation for decisive leadership and strategic focus, Sir Dave Lewis now faces the challenge of reviving Diageo’s global sales and restoring confidence in one of the world’s most recognised drinks companies.
