Former Tesco boss Sir Dave Lewis is to develop into the brand new chief govt of Diageo, the struggling FTSE 100 drinks large.
The world’s largest spirits maker, which counts Guinness and Johnnie Walker whisky amongst its steady of manufacturers, mentioned he would assume the position in January.
The seek for a brand new boss started in July when Debra Crew was successfully ousted after two years in cost.
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The corporate’s share worth fell 40% throughout her tenure because the business grappled a drastic decline within the variety of individuals consuming at residence following the COVID pandemic and, extra not too long ago, the US commerce conflict.
A deliberate fightback by Ms Crew was seen by traders as failing to go far sufficient.
Sir Dave led a six-year turnaround of Tesco, the UK’s largest retailer, from 2014.
He earned the nickname ‘Drastic Dave’ in his earlier position at Unilever, the patron items large, the place he was credited with attaining comparable success by way of cost-cutting and focused advertising.
Diageo’s market positions have fared higher than rivals through the downturn however its shares are nonetheless hovering round lows not seen for a decade.
Picture:
Debra Crew was appointed chief govt after the sudden loss of life of Sir Ivan Menezes in 2023. Pic: Diageo
Solely final week, the corporate downgraded its gross sales and revenue outlook for subsequent 12 months.
Diageo chair John Manzoni instructed traders: “The Board unanimously felt that Dave has both the extensive CEO experience, and the proven leadership skills in building and marketing world-leading brands, that is right for Diageo at this time.”
Sir Dave mentioned of the duty dealing with him: “Diageo is a world leading business with a portfolio of very strong brands, and I am delighted to be joining the team.
“The market faces some headwinds however there are additionally important alternatives. I look ahead to working with the workforce to face these challenges and realise among the alternatives in a manner which creates shareholder worth.”
Matt Britzman, senior equity analyst at Hargreaves Lansdown, responded: “Lewis brings deep expertise in shopper manufacturers from his time main Tesco and a long time at Unilever, although he lacks direct publicity to the spirits business.
“Investors may welcome his strong marketing pedigree, but any major strategic reset will take time, leaving near-term focus on navigating tough trading conditions.”
