Sir Dave Lewis has been appointed as the new chief executive of Diageo, effective January 1, following the resignation of Debra Crew last summer after two years in the role. Diageo, the world’s largest drinks company and owner of well-known brands such as Johnnie Walker, Smirnoff, and Captain Morgan, has faced declining sales across key markets, notably in the U.S. and China, despite a rise in Guinness sales. Recently, the company’s shares fell to a 10-year low, leading to questions about its sales strategy.
Lewis, who previously served as chief executive of Tesco for six years until 2020 and spent nearly three decades at Unilever, will be leaving his current position as chairman of health company Haleon to join Diageo. The board of Diageo expressed confidence in his extensive leadership experience as appropriate for the current challenges facing the company. Following the announcement of his appointment, Diageo’s share price increased by 7% in early trading.
Diageo reported a decline in operating profits, which fell to £3.2 billion for the year ending June, a decrease of about 28% compared to the prior year. The company has acknowledged the need for significant improvement amid what it described as a challenging environment, influenced by rising inflation and changing consumer behaviors that have led to reduced spending on alcohol and dining out.
Lewis emphasized that while there are challenges ahead, opportunities also exist, indicating a focus on addressing current issues to enhance shareholder value. He will take over from Nik Jhangiani, who has been serving as the interim chief executive since Crew’s departure, and Jhangiani will return to his role as chief financial officer.
Source: https://www.bbc.com/news/articles/cy4021v7wepo?at_medium=RSS&at_campaign=rss