New leader steps in amid challenging market conditions
Diageo, the world’s largest drinks company, has appointed former Tesco chief executive Sir Dave Lewis as its new boss. He will officially take over on 1 January, following the summer resignation of Debra Crew after two years at the helm. The move is part of the company’s effort 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. Following the announcement, shares rose 7% in early Monday trading.
Major brands face pressure in key markets
Diageo owns global names including Johnnie Walker, Smirnoff and Captain Morgan. Yet sales have declined in major 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 step down from his current role as chairman of health firm Haleon to lead Diageo. The board said his proven leadership record makes him “the right person to guide the company through this period.”
‘Drastic Dave’ pledges bold action
Sir Dave, nicknamed “Drastic Dave” for his decisive management style, said he sees both challenges and opportunities ahead. “The market faces headwinds, but there are also significant opportunities,” he said. “I look forward to working with the team to tackle these challenges and create value for shareholders.”
Profits decline 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 called it a “challenging year” and admitted “there is much more to do.” Rising inflation has forced consumers to cut back on spending, including eating and drinking out. Younger generations are also consuming less alcohol, forcing traditional brands to rethink their marketing and product strategies.
Analysts expect immediate focus on recovery
Industry experts say Sir Dave will act quickly to stabilise the business. Dan Coatsworth, head of markets at AJ Bell, said, “He listens closely to customers and suppliers to find out what has gone wrong. His initial focus will be on repair work, not long-term expansion.” Coatsworth added that Sir Dave left Tesco after stabilising the business, suggesting a similar approach may be taken at Diageo.
Experienced leader to guide global drinks giant
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 record of decisive leadership and turnaround expertise, Sir Dave Lewis now faces the task of restoring growth, rebuilding confidence, and steering one of the world’s most iconic drinks companies toward a stronger future.
