Diageo has appointed Sir Dave Lewis as its new chief executive, bringing in the former Tesco boss to reverse a dramatic decline in the drinks giant's fortunes. Lewis will take the helm on January 1, stepping down from his role as chairman of Haleon to tackle challenges that have seen Diageo's share price fall by nearly half over the past two years.
The appointment comes as Diageo grapples with weaker consumer demand in key markets including China and the US. The company behind Guinness and Johnnie Walker saw its sales drop for the first time in roughly four years during the 2023-24 financial year. Its stock has fallen by a fifth in just the past six months.
Lewis replaces interim chief executive Nik Jhangiani, who has held the role since July when Debra Crew resigned abruptly after two years as Diageo's first female CEO. Jhangiani, who is also the company's chief financial officer, will return to that position. The leadership upheaval follows the death of former CEO Sir Ivan Menezes in June 2023.
Expectations and challenges
Diageo chairman Sir John Manzoni said: "Having conducted an extensive and thorough global search, the board unanimously felt that Dave has both the extensive CEO experience, and the proven leadership skills in building and marketing world-leading brands, that is right for Diageo at this time." He added: "We are confident that Dave will work with the team to take Diageo into its next successful chapter in the evolving consumer environment."
Lewis, who led Tesco for six years until 2020 after nearly 30 years at Unilever, acknowledged the difficult environment ahead. "The market faces some headwinds but there are also significant opportunities," he said. "I look forward to working with the team to face these challenges and realise some of the opportunities in a way which creates shareholder value." The new CEO will earn £1.5 million annually with £210,000 in pension contributions, inheriting a company facing a £150 million annual hit from US tariffs alongside Crew's planned $500 million cost-cutting programme.
Note: This article was created with Artificial Intelligence (AI).
