Diageo is reportedly considering selling its Chinese assets as part of a broader portfolio review under its new chief executive, Dave Lewis. The owner of Guinness and Johnnie Walker is said to be working with Goldman Sachs and UBS to assess operations in China, where sales have been weakening.
According to reports, the review includes Diageo’s majority stake in Shanghai-listed Sichuan Swellfun, a producer and distributor of baijiu. The Chengdu-based company has seen its share price fall sharply over the past year amid softer demand. Lewis, who took charge on 1 January after leading turnarounds at Tesco and Unilever, is known for aggressive cost-cutting and simplification. Diageo faces multiple pressures, including falling Chinese sales, high debt, shifting consumer habits, and the impact of tariffs linked to Donald Trump.
The potential China sale would follow Diageo’s recent decision to exit African brewing by selling its stake in East African Breweries to Asahi. The company is seeking to refocus after a turbulent period under former chief executive Debra Crew, whose tenure included profit warnings and supply issues, including a high-profile Guinness shortage in the UK last winter.
