New chief to steer drinks giant through turbulent times
Diageo, the world’s leading drinks group, has appointed former Tesco chief executive Sir Dave Lewis as its next leader. He will take charge on 1 January, succeeding Debra Crew, who resigned in the summer after two years at the helm. The company hopes his appointment will revive slowing sales and restore investor confidence. Guinness continues to perform well, but Diageo’s overall business has weakened, driving its shares to a 10-year low. Following the announcement, shares rose 7% in early Monday trading.
Big brands hit by global slowdown
Diageo owns world-famous names such as Johnnie Walker, Smirnoff and Captain Morgan, yet has faced falling sales in key markets, particularly the United States and China. Sir Dave brings extensive experience from his six years running Tesco and nearly 30 years at Unilever. He will leave his current role as chairman of health firm Haleon to focus on Diageo. The company’s board praised his “proven leadership and turnaround expertise,” calling him “the right person to lead Diageo forward.”
‘Drastic Dave’ ready for decisive action
Known in the business world as “Drastic Dave” for his bold, results-driven approach, Sir Dave said he saw both risk and opportunity ahead. “The market faces headwinds, but there are also significant opportunities,” he said. “I look forward to working with the team to face these challenges and deliver long-term value for shareholders.”
Profits slump as spending tightens
Diageo’s operating profits fell 28% to £3.2 billion in the year to June compared with the previous year. The company called the period “challenging” and admitted there was “much more to do.” Inflation and rising living costs have forced consumers to cut back on social spending, including eating and drinking out. Younger consumers are also drinking less alcohol, forcing established brands to adapt to new preferences and lifestyles.
Analysts expect rapid recovery drive
Market experts predict Sir Dave will move quickly to stabilise the company. Dan Coatsworth, head of markets at AJ Bell, said, “He listens carefully to customers and suppliers to understand the problems. His focus will be immediate repair, not long-term expansion.” Coatsworth added that Sir Dave’s track record at Tesco—where he left after restoring stability—suggests he could take a similar approach at Diageo.
Veteran leader steps in to steady the ship
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 firm leadership and strategic clarity, Sir Dave Lewis now faces the challenge of reigniting growth, restoring confidence and guiding one of the world’s most iconic drinks makers through a new phase of transformation.
