Former Tesco boss Sir Dave Lewis is to become the new chief executive of Diageo, the struggling FTSE 100 drinks giant.
The world’s largest spirits maker, which counts Guinness and Johnnie Walker whisky among its stable of brands, said he would assume the role in January.
The search for a new boss began in July when Debra Crew was effectively ousted after two years in charge.
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The company’s share price fell 40% during her tenure as the industry grappled a drastic decline in the number of people drinking at home following the COVID pandemic.
A planned fightback by Ms Crew was seen by investors as failing to go far enough.
Sir Dave led a six-year turnaround of Tesco, the UK’s biggest retailer, from 2014.
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He earned the nickname ‘Drastic Dave’ in his previous role at Unilever, the consumer goods giant, where he was credited with achieving similar success through cost-cutting and targeted marketing.
Diageo’s market positions have fared better than rivals during the downturn but its shares are still hovering around lows not seen for a decade.
Only last week, the company downgraded its sales and profit outlook for next year.
Diageo chair John Manzoni told investors: “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.”
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Sir Dave said of the task facing 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 but there are also significant opportunities. I look forward to working with the team to face these challenges and realise some of the opportunities in a way which creates shareholder value.”
Diageo shares were 7% up on news of the appointment.
Matt Britzman, senior equity analyst at Hargreaves Lansdown, responded: “Lewis brings deep experience in consumer brands from his time leading Tesco and decades at Unilever, though he lacks direct exposure to the spirits industry.
“Investors may welcome his strong marketing pedigree, but any major strategic reset will take time, leaving near-term focus on navigating tough trading conditions.”
