Diageo is reportedly considering selling its Chinese assets as part of a portfolio review under its new chief executive, Dave Lewis. According to Bloomberg, the Guinness and Johnnie Walker owner is working with Goldman Sachs and UBS to assess its operations in China, where sales have declined sharply.
Diageo’s holdings include a majority stake in Sichuan Swellfun, a Shanghai-listed producer and distributor of baijiu. Shares in the Chengdu-based group have fallen significantly over the past year, prompting interest from Chinese strategic buyers and private equity firms. Lewis, who took over on 1 January, has a reputation for aggressive restructuring from his time leading Unilever and later turning around Tesco.
The potential divestment follows Diageo’s recent sale of its stake in East African Breweries to Asahi Group and comes amid wider pressures including US tariffs, high debt, shifting consumer habits and falling demand in China. The review marks another step in reshaping the world’s largest spirits maker after a turbulent period under former chief executive Debra Crew, whose tenure was hit by profit warnings and supply issues.
