Diageo is reportedly considering selling its Chinese assets as part of an early shake-up under its new chief executive, Dave Lewis. The owner of brands including Guinness and Johnnie Walker is said to be working with Goldman Sachs and UBS to review its China operations, where sales have been declining. According to reports, the move could involve divesting its majority stake in Sichuan Swellfun, a Shanghai-listed producer and distributor of baijiu.
Lewis, who took over on 1 January, has a reputation for aggressive cost-cutting from his time leading Unilever and later turning around Tesco. Diageo has been under pressure from falling demand in China, rising debt, changing consumer habits and the impact of tariffs linked to Donald Trump. The company has already begun trimming its global footprint, agreeing last month to sell its stake in East African Breweries to Asahi Group. Analysts see the potential China exit as part of a broader effort to refocus the world’s largest spirits maker on higher-growth and more profitable markets.
