Diageo is reportedly considering selling its Chinese assets as part of a strategic overhaul under new chief executive Dave Lewis. The owner of Guinness and Johnnie Walker is said to be working with Goldman Sachs and UBS to review its China operations, where sales have been weakening. According to Bloomberg, the move could include the sale of Diageo’s majority stake in Sichuan Swellfun, a Shanghai-listed producer and distributor of baijiu. Shares in Swellfun have fallen sharply over the past year amid slowing demand.
Lewis, who took over at the start of January, is known for aggressive cost-cutting and restructuring from his time at Unilever and later Tesco. Diageo faces multiple pressures, including falling Chinese sales, shifting consumer habits away from alcohol, high debt levels and the impact of US trade tariffs. The company has already begun trimming its global footprint, recently agreeing to sell its stake in East African Breweries to Asahi Group. Analysts see a potential China exit as another step in reshaping the world’s largest spirits maker after a turbulent period marked by profit warnings and supply disruptions, including a recent Guinness shortage in the UK.
