What's happened
Diageo has named Sir Dave Lewis, former Tesco CEO, as its new chief executive, effective January 1, 2026. Lewis's appointment aims to revive the struggling spirits giant amid declining sales, market pressures, and a battered share price. He replaces interim CEO Nik Jhangiani, who will return to his CFO role.
What's behind the headline?
Strategic Reset Likely
Lewis's track record of turning around large consumer businesses suggests he will focus on cost reductions and asset disposals to improve Diageo's financial health. His experience in marketing and brand management indicates he will prioritize revitalizing core brands like Johnnie Walker and Guinness.
Market Challenges
The company is grappling with declining demand in major markets, supply chain disruptions, and geopolitical tariffs, notably in the US. The recent downgrades to sales and profit outlook highlight the severity of these headwinds.
Potential Outcomes
Lewis's leadership should bring a disciplined approach to cost management, possibly including asset sales or divestments, though the company remains cautious about selling key brands like Guinness or its stake in Moët Hennessy. The focus will be on navigating short-term pressures while positioning for long-term growth.
Investor Sentiment
Shares have fallen significantly, but the appointment of a proven turnaround specialist has boosted investor confidence, with shares rising 7% immediately following the announcement. The next few quarters will reveal how effectively Lewis can execute his strategy amid ongoing market headwinds.
What the papers say
The articles from Reuters, The Guardian, The Independent, and Sky News collectively portray Lewis as a highly experienced leader with a proven record of restructuring major consumer brands. Reuters emphasizes his cost-cutting expertise from Tesco and Unilever, while The Guardian and The Independent highlight the challenging environment Diageo faces, including declining sales and market headwinds. Sky News notes the immediate positive market reaction and the strategic importance of his appointment. There are contrasting views on the company's prospects, with some analysts optimistic about Lewis's ability to reset the business, while others caution that the industry’s structural challenges will take time to resolve. The articles collectively suggest that Lewis's leadership is a critical inflection point for Diageo, but the path forward remains uncertain.
How we got here
Diageo, owner of brands like Johnnie Walker and Guinness, faces a challenging environment with declining sales, supply chain issues, and market headwinds in key regions like China and the US. Previous CEO Debra Crew resigned in July after a turbulent tenure marked by profit warnings and strategic missteps. Lewis, renowned for his cost-cutting and brand-building at Tesco and Unilever, is expected to lead a strategic reset to stabilize and grow the company.
Go deeper
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Diageo plc is a British multinational beverage alcohol company, with its headquarters in London, United Kingdom. They operate in more than 180 countries and produce in more than 140 sites around the world.
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Tesco plc, trading as Tesco, is a British multinational groceries and general merchandise retailer with headquarters in Welwyn Garden City, Hertfordshire, England, United Kingdom.
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Unilever is a British-Dutch multinational consumer goods company, headquartered in London, United Kingdom and Rotterdam, The Netherlands.
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Debra Ann Crew is an American business executive, who was the chief executive of Diageo from 2023 to 2025. She is a non-executive board member of Mondelez International, and the former chief executive of R. J. Reynolds Tobacco Company.