Dave Lewis has been appointed as the new CEO of Diageo, a London-based alcoholic drinks company that has faced challenges in recent years. His arrival has led to a significant increase in Diageo’s stock market value, with shares rising by as much as 7%, adding over £2 billion in value to the company.
Lewis will officially commence his role on January 1. His appointment follows a lengthy four-month recruitment process to replace Debra Crew, who was ousted amid disappointing performance indicators and a downturn affected by the post-pandemic economic landscape. Lewis, previously credited with revitalizing Tesco, faces the task of navigating Diageo through its current struggles, including a troubling sales outlook and supply chain issues that have hampered availability of products in the UK market.
Recent reports have pointed to a combination of strategic missteps and evolving consumer behaviors, particularly among younger generations, who are drinking less. An August update from investment firm Fundsmith indicated a declining confidence in Diageo, linked in part to rising popularity of weight-loss drugs impacting alcohol consumption.
Lewis, having earned a reputation for aggressive operational management in his previous roles, may consider a variety of strategies to stabilize Diageo. These strategies could range from divesting underperforming brands to revisiting potential asset sales, such as the iconic Guinness brand, which Diageo has previously denied planning to sell. The potential restructuring might also focus on sharpening marketing efforts on Diageo’s top-performing labels.
Despite these challenges, Diageo has maintained its dividend payments. Analysts suggest that Lewis has the opportunity to take decisive actions that could lead to long-term improvement, although macroeconomic factors and consumer confidence remain uncertain. How effectively he implements changes to reverse the company’s fortunes will be closely monitored.
Source: https://www.theguardian.com/business/2025/nov/10/drastic-dave-lewis-drinks-giant-diageo-tesco-guinness