Leadership change targets renewed growth
Diageo, the world’s largest drinks company, has appointed former Tesco chief executive Sir Dave Lewis as its new leader. He will take charge on 1 January, following the summer resignation of Debra Crew, who stepped down after two years in the role. The company aims to reverse falling sales and rebuild investor confidence. While Guinness continues to perform well, other brands in Diageo’s portfolio have struggled, pushing shares to a 10-year low. The announcement lifted shares by 7% in early Monday trading.
Global brands face market challenges
Diageo owns iconic drinks including Johnnie Walker, Smirnoff and Captain Morgan, but sales have dropped in key markets such as the United States and China. Sir Dave brings decades of experience, with nearly 30 years at Unilever and six years leading Tesco. He will leave his current role as chairman of health firm Haleon to focus on Diageo. The board said his “proven leadership and turnaround expertise” make him “the right person to guide the company forward.”
‘Drastic Dave’ pledges bold action
Sir Dave, known as “Drastic Dave” for his decisive leadership style, said he is ready to tackle the challenges ahead. “The market faces headwinds, but there are also significant opportunities,” he said. “I look forward to working with the team to overcome these challenges and deliver value for shareholders.”
Profits decline amid changing habits
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 said “there is more work to do.” Rising inflation has forced consumers to cut back on dining and drinking out. Younger generations are drinking less alcohol, prompting brands to adapt products and marketing strategies to evolving habits.
Analysts expect immediate stabilisation focus
Experts predict Sir Dave will prioritise repair work before long-term growth. Dan Coatsworth, head of markets at AJ Bell, said, “He listens closely to customers and suppliers to identify issues. His first focus will be stabilising operations, not expansion.” Coatsworth noted Sir Dave left Tesco after restoring stability, suggesting a similar approach at Diageo.
Experienced leader steps in
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 his reputation for decisive leadership and turnaround expertise, Sir Dave Lewis now faces the task of reigniting growth, restoring confidence, and guiding one of the world’s most recognised drinks companies through a critical period.
