Diageo names former Tesco boss new CEO

Diageo has appointed the erstwhile caput of Tesco Sir Dave Lewis arsenic its caller CEO and enforcement director.

The determination concludes the Guinness and Johnnie Walker owner’s hunt for a successor pursuing Debra Crew’s departure successful July.

Lewis takes connected the relation arsenic of January adjacent year. Interim CEO Nik Jhangiani volition pb the institution done December and past instrumentality to his erstwhile CFO position, Diageo said successful a connection contiguous (10 November).

Deirdre Mahlan, who returned to Diageo arsenic interim CFO successful July, volition proceed to enactment the transition.

Commenting connected the appointment, John Manzoni, Diageo’s chair, said: “Having conducted an extended and thorough planetary search, the committee unanimously felt that Dave has some the extended CEO experience, and the proven enactment skills successful gathering and selling world-leading brands, that is close for Diageo astatine this time.”

Lewis led the British retail concatenation Tesco arsenic radical CEO from 2014 to 2020. He besides spent astir 3 decades astatine Unilever, wherever helium held enforcement committee roles overseeing selling and concern performance.

He has besides chaired user healthcare institution Haleon since its enactment successful 2022 and works arsenic a non-executive manager astatine PepsiCo.

The Captain Morgan shaper said Lewis volition measurement down from Haleon connected 31 December 2025 up of assuming his caller station astatine the commencement 2026.

Lewis said: “Diageo is simply a satellite starring concern with a portfolio of precise beardown brands, and I americium delighted to beryllium joining the team. The marketplace faces immoderate headwinds but determination are besides important opportunities.

“I look guardant to moving with the squad to look these challenges and realise immoderate of the opportunities successful a mode which creates shareholder value.”

The enactment update follows Diageo’s revised income and nett guidance issued past week.

In a trading connection for its fiscal archetypal quarter, the distiller said it expected integrated nett income maturation “to beryllium level to somewhat down”.

Diageo pointed to “the adverse interaction from Chinese achromatic spirits and a weaker US user situation than primitively planned for”.

The radical had antecedently forecast its integrated nett income maturation would beryllium “at a akin level” to its erstwhile fiscal year, with maturation sitting much successful the 2nd fractional of the year. It had besides expected its integrated operating nett to turn by “mid-single digit”.

It present expects this maturation to beryllium betwixt “low to mid-single digit”.

For the 3 months ended 30 September, the Don Julio distiller booked level integrated nett income connected 2024, portion they declined 2.2% connected a reported ground to $4.9bn.

In Diageo’s North America business, integrated nett income were down 2.7% astatine $1.84bn. The unit, which makes up 38% of the company’s full sales, saw its integrated nett income being deed by “a challenging situation crossed user goods”.