New leadership to tackle declining growth
Diageo, the world’s largest drinks producer, has appointed former Tesco chief executive Sir Dave Lewis as its new boss. He will step into the role on 1 January, following the summer resignation of Debra Crew after two years in charge. The company hopes his arrival will spark a turnaround after months of sliding sales and investor concerns. Although Guinness continues to grow, Diageo’s overall performance has weakened, sending shares to a 10-year low. The announcement of Sir Dave’s appointment lifted shares by 7% in early Monday trading.
Sales slump hits major markets
The firm, whose brands include Johnnie Walker, Smirnoff and Captain Morgan, has faced shrinking sales in the United States and China. Sir Dave brings vast experience from consumer goods, having led Tesco for six years and spent nearly three decades at Unilever. He will leave his position as chairman of health company Haleon to take on Diageo’s top job. The board praised his “proven leadership” and said he was “the right person to guide Diageo through this period.”
‘Drastic Dave’ eyes bold recovery
Sir Dave, known as “Drastic Dave” for his decisive management style, said he sees both obstacles and opportunities ahead. “The market faces headwinds, but there are also significant opportunities,” he said. “I look forward to working with the team to address challenges and deliver value for shareholders.”
Falling profits add pressure to act
In the year to June, Diageo’s operating profits fell 28% to £3.2 billion compared with the previous year. The company described the year as “challenging,” citing “pressure on consumers” from rising inflation. Many people have reduced spending on eating and drinking out, while younger generations are consuming less alcohol than before. These shifts have forced the company to rethink its strategy and product mix.
Analysts predict swift changes
Market analysts expect Sir Dave to move quickly. Dan Coatsworth, head of markets at AJ Bell, said, “He listens closely to customers and suppliers to uncover problems. His first focus will be repair work, not long-term expansion.” Coatsworth noted that Sir Dave left Tesco once he had stabilised the business, suggesting he may take a similar approach at Diageo.
New chapter for the drinks giant
Sir Dave replaces Nik Jhangiani, Diageo’s chief financial officer, who has been acting as interim chief executive since July. With his reputation for tough decision-making and strategic focus, Sir Dave Lewis now faces the task of restoring growth and investor trust in one of the world’s best-known drinks companies.
