Key facts
- Diageo has appointed Sir Dave Lewis as its new chief executive, effective January 1.
- Sir Dave Lewis previously served as CEO of Tesco for six years until 2020.
- Diageo's shares rose 7% on Monday following the announcement of Lewis's appointment.
- The company has experienced weakening sales in key markets, including the US and China.
- Diageo's operating profits declined 28% to £3.2bn in the year to June.
- Net sales for Diageo were down 0.1% in the year to June.
Diageo, the world's largest drinks company, has appointed Sir Dave Lewis as its new chief executive, effective January 1, 2026. Lewis, who previously led Tesco for six years until 2020 and spent nearly three decades at Unilever, will take over from Debra Crew, who stepped down in the summer. The appointment comes as Diageo seeks to address flagging sales across its portfolio, particularly in the US and China, despite growth in its Guinness brand.
Diageo's share price rose 7% on Monday following the announcement. The company has faced challenges including weaker consumer spending due to rising inflation and changing drinking habits among younger generations. In the year to June, Diageo's operating profits declined by 28% to £3.2bn, with net sales down 0.1%. The company recently forecast flat to slightly down net sales for the upcoming year, citing a weaker US consumer environment and lower sales in China.
Sir John Manzoni, Diageo's chair, stated that Lewis possesses the extensive CEO experience and leadership skills necessary to guide the company through its current challenges and capitalize on opportunities. Lewis himself expressed enthusiasm for joining Diageo and working with the team to create shareholder value. Nik Jhangiani, Diageo's chief financial officer, will continue to lead the business on an interim basis until Lewis takes over, after which he will return to his CFO role. Lewis will also step down as chairman of health firm Haleon on December 31.