New chief aims to restore confidence and growth
Global drinks leader Diageo has named former Tesco chief executive Sir Dave Lewis as its next boss. He will take over on 1 January after Debra Crew resigned in the summer following two years in charge. The appointment signals Diageo’s push to recover from falling sales and regain investor trust. While Guinness continues to thrive, the company’s wider portfolio has struggled, sending shares to a decade-long low. News of the leadership change lifted Diageo’s shares by 7% in early trading on Monday.
Major brands hit by weakening demand
Diageo, owner of Johnnie Walker, Smirnoff and Captain Morgan, has seen sales decline in key markets such as the United States and China. Sir Dave brings decades of experience, having led Tesco for six years and spent nearly 30 years at Unilever. He will leave his current position as chairman of health group Haleon to take on the challenge. The board said his proven track record and leadership style made him “the right person to lead Diageo at this time.”
‘Drastic Dave’ promises decisive action
Known for his bold management approach, Sir Dave earned the nickname “Drastic Dave” for his willingness to make tough calls. “The market faces some headwinds, but there are also significant opportunities,” he said. “I look forward to working with the team to face these challenges and create lasting shareholder value.”
Profits fall as consumer habits shift
Diageo’s operating profits fell 28% to £3.2 billion in the year to June compared with the previous year. The company described it as a “challenging period” with “more work to do.” Inflation and rising living costs have caused consumers to spend less on drinking and dining out. At the same time, younger generations are drinking less alcohol, prompting traditional brands to rethink how they connect with customers.
Analysts expect quick reforms
Industry analysts believe Sir Dave will focus on fast repairs rather than long-term growth. Dan Coatsworth, head of markets at AJ Bell, said, “He listens closely to customers and suppliers to find what’s gone wrong. His first mission will be to stabilise the business.” Coatsworth noted that Sir Dave left Tesco once he had repaired its operations, suggesting he may take a similar path at Diageo.
Experienced hand takes control
Sir Dave replaces interim chief executive Nik Jhangiani, Diageo’s chief financial officer, who stepped in after Debra Crew’s departure in July. With his history of bold decisions and strategic discipline, Sir Dave Lewis now faces the challenge of reviving Diageo’s global sales and strengthening one of the world’s most iconic drinks makers.
