New leader set to tackle falling sales
Diageo, the world’s largest drinks group, has appointed former Tesco chief executive Sir Dave Lewis as its new chief. He will take over on 1 January after Debra Crew stepped down in the summer following two years in the role. The company hopes his appointment will help turn around its slowing performance. While Guinness continues to post strong growth, Diageo’s broader portfolio has struggled, sending shares to their lowest point in a decade. After the announcement, shares climbed 7% in early Monday trading.
Iconic brands hit by weaker demand
Diageo owns well-known names such as Johnnie Walker, Smirnoff and Captain Morgan, but sales have fallen sharply in the United States and China. Sir Dave brings deep experience from consumer goods, having spent nearly 30 years at Unilever and six years leading Tesco. He will step down from his current role as chairman of health firm Haleon to take charge at Diageo. The board praised his “strong leadership” and said he was “the right person to guide the company through this period.”
‘Drastic Dave’ ready for bold change
Sir Dave earned the nickname “Drastic Dave” for his direct and decisive leadership style. “The market faces some headwinds, but there are also major opportunities,” he said. “I look forward to working with the team to meet those challenges and deliver value for shareholders.”
Profits fall as habits evolve
In the year to June, Diageo’s operating profits dropped 28% to £3.2 billion compared with the previous year. The company called it a “challenging time” and admitted there was “more work to do.” Rising living costs have forced consumers to spend less on eating and drinking out. Younger people are also drinking less alcohol than older generations, pushing major drinks companies to rethink their approach.
Analysts expect quick results
Market analysts say Sir Dave will likely focus on short-term fixes before planning long-term growth. Dan Coatsworth, head of markets at AJ Bell, said, “He listens closely to customers and suppliers to find the root of the problem. His goal will be to stabilise the business quickly.” Coatsworth added that Sir Dave left Tesco after restoring stability, a strategy he might repeat at Diageo.
Seasoned leader steps in
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 a history of sharp decision-making and proven turnaround success, Sir Dave Lewis now faces the task of reigniting Diageo’s growth and restoring confidence in one of the world’s best-known drinks makers.
