Prime Highlights:
- Dave Lewis, former Tesco CEO, has been appointed as the new CEO of Diageo to lead growth and revitalize its global brands.
- Diageo shares jumped nearly 8% following the announcement, showing strong investor confidence in Lewis’ leadership.
Key Facts:
- Diageo faces challenges including $21.9 billion in debt, rising U.S. tariffs, and declining alcohol consumption among younger consumers.
- Lewis brings extensive experience, having successfully turned around Tesco and spent 30 years at Unilever improving brands and managing costs.
Background:
Diageo (DGE.L) has appointed Dave Lewis, the former CEO of UK retail giant Tesco (TSCO.L), as its new chief executive, ending a months-long search for leadership amid a challenging period for the world’s largest spirits maker. Lewis, 60, will assume his role in January 2026, following Diageo’s recent downgrade of its sales and profit outlook for fiscal 2026.
Investors responded positively to the appointment, with Diageo shares rising nearly 8% on Monday. Analysts described Lewis’ selection as a “pleasant surprise,” noting his proven ability to revive struggling businesses and drive growth.
Lewis will lead a company that owns well-known brands like Johnnie Walker whisky, Guinness beer, and Don Julio tequila. Diageo is dealing with high debt of $21.9 billion, higher tariffs in the U.S., and fewer young people drinking alcohol.
Lewis has a lot of experience leading companies. At Tesco, he fixed problems after an accounting scandal and brought back profits in four years. Before that, he worked for 30 years at Unilever, where he was known for managing costs well and improving brands.
Analysts highlight that Lewis’s combination of brand understanding, strategic focus, and operational discipline positions him well to address Diageo’s current challenges. “It may not require drastic change at Diageo, but the brands’ appeal needs revitalization at a time when the industry faces structural headwinds,” said Kai Lehmann, senior analyst at Flossbach von Storch, a major shareholder.
Interim CEO Nik Jhangiani will return to his role as finance chief, while Dave Lewis prepares to step down from his current position as chair of consumer healthcare group Haleon at the end of the year. Lewis said he is excited about his new role. He knows the market has challenges but sees many opportunities. He wants to work with the team to grow the company and help shareholders.
Investors are hopeful that with Lewis in charge, Diageo can handle its problems and grow its global brands.
