Diageo is reportedly exploring the sale of its Chinese assets as part of a broader effort to simplify its global portfolio under new chief executive Dave Lewis. According to Bloomberg, the Guinness and Johnnie Walker owner is working with Goldman Sachs and UBS to review its China operations amid declining sales.
Diageo’s holdings include a majority stake in Sichuan Swellfun, a Shanghai-listed producer and distributor of baijiu, whose shares have fallen sharply over the past year. Potential buyers are said to include Chinese strategic investors and private equity firms. Lewis, who took over in January and earned the nickname “Drastic Dave” during his time at Unilever, is known for aggressive cost-cutting and portfolio reshaping.
The possible divestment comes as Diageo faces pressures from falling Chinese demand, high debt, changing consumer habits and the impact of tariffs linked to Donald Trump. It follows the recent sale of Diageo’s stake in East African Breweries to Asahi and signals a continued retreat from underperforming regions as the world’s largest spirits maker seeks to stabilise its business.
