New leadership aims to reverse declining performance
Diageo, the world’s largest drinks company, has appointed former Tesco chief executive Sir Dave Lewis as its new leader. He will officially take over on 1 January, after Debra Crew resigned in the summer following two years in charge. The appointment signals Diageo’s strategy to revive weakening sales and restore investor confidence. Guinness continues to grow, but other brands in the portfolio have struggled, pushing shares to a 10-year low. After the announcement, Diageo’s shares rose 7% in early Monday trading.
Global brands hit by market challenges
Diageo owns major drinks brands, including Johnnie Walker, Smirnoff and Captain Morgan, but sales have weakened in key markets such as the United States and China. Sir Dave brings decades of experience, having spent nearly 30 years at Unilever and six years leading Tesco. He will step down as chairman of health firm Haleon to focus on Diageo. The board said his “proven leadership and turnaround experience” make him “the right person to guide the company forward.”
‘Drastic Dave’ pledges bold action
Nicknamed “Drastic Dave” for his decisive style, Sir Dave said he is ready to tackle the challenges ahead. “The market faces headwinds, but there are also significant opportunities,” he said. “I look forward to working with the team to meet these challenges and create value for shareholders.”
Profits slide as consumer habits change
Diageo’s operating profits fell 28% to £3.2 billion in the year to June compared with the previous year. The company described the period as “challenging” and admitted “there is much more to do.” Rising inflation has forced consumers to reduce spending on dining and drinking out. Younger generations are drinking less alcohol than previous ones, forcing established brands to rethink products and marketing.
Analysts expect quick turnaround measures
Experts say Sir Dave will act fast to stabilise operations before pursuing growth. Dan Coatsworth, head of markets at AJ Bell, said, “He listens to customers and suppliers to understand the problems. His first priority will be repair work, not long-term expansion.” Coatsworth added that Sir Dave left Tesco after restoring stability, suggesting a similar approach may take place at Diageo.
Experienced leader steps in
Sir Dave will replace interim chief executive Nik Jhangiani, Diageo’s chief financial officer, who has led the company since Ms Crew’s departure in July. With a reputation for strong decision-making and turnaround expertise, Sir Dave Lewis now faces the challenge of restoring growth, rebuilding confidence, and steering one of the world’s most iconic drinks companies toward a stronger future.
