In a major strategic move, the troubled drinks conglomerate Diageo has named former Tesco chief Sir Dave Lewis as its new Chief Executive Officer. He is tasked with steering the owner of iconic brands like Guinness and Johnnie Walker through a significant period of challenge and change.
A Proven Leader for a Challenging Time
Sir Dave Lewis, who successfully navigated Tesco through its deepest financial crisis, will officially take the helm at Diageo on 1 January. His appointment comes at a critical juncture for the FTSE 100 company, which has seen its share value plummet by a third this year.
Lewis brings a formidable track record of corporate turnarounds. During his tenure at Tesco from 2014 to 2020, he revived the supermarket giant after uncovering a major accounting scandal that threatened its very existence. Prior to that, he spent nearly three decades at consumer goods behemoth Unilever, the owner of brands like Marmite, honing his skills in brand management.
Navigating Diageo's Struggles
Lewis replaces Debra Crew, whose short tenure as CEO was marked by investor dissatisfaction and a lacklustre company performance. Diageo's troubles have been mounting. A shock profit warning in 2023, issued after a post-pandemic rebound in alcohol consumption, signalled deeper issues.
The company has been battling adverse global consumer trends and was forced to abandon a longstanding sales target in February. Specific problems have included significant supply chain issues and a major misjudgment of waning demand in Latin America, which left the company overstocked. This mismanagement even led to UK pubs having to ration Guinness during the crucial festive period last Christmas.
Further compounding its difficulties, Diageo has been impacted by US trade tariffs during the Trump administration and issued another profit warning just last week, indicating it expects 2026 sales to be flat or slightly lower.
The Road to Recovery
Sir John Manzoni, Diageo’s chair, who led the board's succession process, expressed strong confidence in the new appointment. He stated that after an extensive global search, the board unanimously agreed that Lewis possesses the extensive CEO experience and proven leadership skills needed to build and market world-leading brands, making him the right choice for Diageo at this time.
Lewis himself acknowledged the challenges ahead but remained optimistic. "Diageo is a world-leading business with a portfolio of very strong brands, and I am delighted to be joining the team," he said. "The market faces some headwinds but there are also significant opportunities."
Until Lewis takes over, Nik Jhangiani, the former Chief Financial Officer who had been considered a frontrunner for the permanent role, will continue to lead the business on an interim basis. He will then return to his position as CFO.
In preparation for his new role, Lewis will step down as chair of the consumer health business Haleon on 31 December. Haleon has announced that Vindi Banga, its senior independent director and a former colleague of Lewis at Unilever, will succeed him as chair next year.
