Diageo is reportedly considering selling its Chinese assets as part of a portfolio review under new chief executive Dave Lewis. The owner of Guinness and Johnnie Walker has enlisted Goldman Sachs and UBS to assess its operations in China, where sales have been declining, according to Bloomberg. Diageo’s holdings include a majority stake in Sichuan Swellfun, a Shanghai-listed producer and distributor of baijiu, whose shares have fallen sharply over the past year.
Lewis, who took over on 1 January after leading turnarounds at Unilever and Tesco, is known for aggressive cost-cutting and asset sales. Diageo has already begun reshaping its global footprint, recently agreeing to sell its stake in East African Breweries to Asahi Group. The London-based group is grappling with falling Chinese demand, high debt, shifting consumer habits away from alcohol, and the impact of US tariffs under Donald Trump. The potential China exit would mark another significant step in Diageo’s efforts to simplify its business after a turbulent period that included profit warnings, supply chain issues in Latin America, and a high-profile Guinness shortage in the UK.
