Diageo is reportedly considering selling its Chinese assets as part of a portfolio review under its new chief executive, Dave Lewis. The maker of Guinness and Johnnie Walker has begun working with Goldman Sachs and UBS to assess its operations in China, where sales have been declining.
Diageo’s holdings include a majority stake in Sichuan Swellfun, a Shanghai-listed producer and distributor of baijiu. Shares in the company have fallen sharply over the past year, prompting interest from Chinese strategic buyers and private equity firms. Lewis, who took over on 1 January and is known for aggressive cost-cutting during his time at Tesco and Unilever, is expected to simplify Diageo’s global footprint.
The review comes as Diageo faces pressures from falling Chinese demand, high debt, shifting consumer habits and the impact of US tariffs. The company recently sold its stake in East African Breweries to Asahi Group, signalling a broader effort to streamline. Lewis succeeded Debra Crew after a turbulent period marked by profit warnings, supply disruptions and a high-profile Guinness shortage in the UK.
