New appointment signals urgent shake-up
Diageo, the world’s largest drinks producer, has chosen former Tesco boss Sir Dave Lewis as its next chief executive. He will take over on 1 January, following the summer resignation of Debra Crew, who stepped down after two years in charge. The move aims to revive falling sales and win back investor confidence. While Guinness sales remain strong, other Diageo brands have lagged behind, driving the company’s shares to a 10-year low. News of Sir Dave’s appointment lifted the share price by 7% in early Monday trading.
Global brands lose ground in key markets
Diageo owns iconic drinks such as Johnnie Walker, Smirnoff and Captain Morgan. But sales in major markets like the United States and China have slumped. Sir Dave brings more than three decades of experience, including six years running Tesco and nearly 30 years at Unilever. He will leave his current post as chairman of health firm Haleon to lead Diageo. The board said his “track record of turnaround leadership” makes him “the right person to guide the company through this period.”
‘Drastic Dave’ aims to deliver results fast
Nicknamed “Drastic Dave” for his bold management style, Sir Dave said he was ready for the challenge. “The market faces headwinds, but there are also significant opportunities,” he said. “I look forward to working with the team to overcome challenges and deliver long-term value.”
Falling profits and shifting drinking habits
Diageo’s operating profit dropped 28% to £3.2 billion in the year to June compared with the previous year. The company called it a “challenging year” and admitted “there is more to do.” Inflation has squeezed household budgets, forcing consumers to spend less on dining and drinking out. Younger generations are also choosing to drink less alcohol, putting pressure on traditional drinks brands to adapt to changing habits.
Analysts see a focus on stabilising first
Market experts predict Sir Dave will concentrate on stabilising the company before pursuing growth. Dan Coatsworth, head of markets at AJ Bell, said, “He listens carefully to customers and suppliers to understand what’s gone wrong. His approach will focus on fixing problems quickly, not slow expansion.” Coatsworth added that Sir Dave left Tesco after restoring its stability, which could signal a similar approach at Diageo.
Seasoned leader steps into the spotlight
Sir Dave replaces 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 tough decision-making and strategic clarity, Sir Dave Lewis now faces the challenge of reigniting growth, rebuilding trust and steering one of the world’s best-known drinks empires through uncertain times.
