Diageo, the world’s largest drinks company and home to iconic brands like Guinness, Johnnie Walker, Smirnoff, and Captain Morgan, is set for a major leadership shake-up as it battles one of the toughest periods in its recent history. On January 1, 2026, Sir Dave Lewis—the former Tesco boss known for his bold, no-nonsense style—will step in as Chief Executive Officer, succeeding interim CEO Nik Jhangiani and aiming to reverse a worrying slide in sales and share price.
The move comes after a tumultuous year for Diageo, which saw Debra Crew abruptly step down as CEO in July 2025 after just two years at the helm. Her departure left the company scrambling for direction as it struggled with declining sales across nearly all categories, save for a bright spot in Guinness. According to BBC, shares in Diageo had recently tumbled to a ten-year low, reflecting investor jitters about the company’s future. Yet, the announcement of Sir Dave’s appointment sent a jolt of optimism through the markets, bumping the share price up by 7% in early trading on November 10, 2025.
"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," Sir Dave said in a statement reported by Daily Business Group.
The challenges Sir Dave inherits are formidable. In its latest trading update, Diageo cut its full-year sales and profit forecasts, citing a "weaker US consumer environment" and softening demand in China—two of its most important markets. For the financial year ending in June 2025, the company’s operating profits nosedived by 28% to £3.2 billion, while net sales slipped by 0.1%. The company expects 2026 organic net sales to be flat or even slightly lower, with operating profit growth forecasted to be in the low to mid-single digits, according to BBC and Daily Business Group.
What’s behind this slump? The reasons are many, and they cut across both global and generational lines. Rising inflation has put a squeeze on household budgets, prompting people to cut back on discretionary spending like dining out and drinking. Meanwhile, as BBC points out, younger consumers are drinking less alcohol than previous generations—a trend that’s reshaping the entire industry. Even the world’s biggest brands aren’t immune.
Diageo’s board, led by Chair Sir John Manzoni, spent months searching for the right leader to steady the ship. "Having conducted an extensive and thorough global search, 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. We are confident that Dave will work with the team to take Diageo into its next successful chapter in the evolving consumer environment," Manzoni said, as reported by Daily Business Group.
Sir Dave Lewis’s résumé is certainly impressive. He spent six years as Group CEO of Tesco, steering the UK’s largest supermarket through a period of turbulence and transformation from 2014 to 2020. Prior to that, he logged nearly three decades at Unilever, where he honed his skills in marketing and brand management—experience that Diageo’s board is banking on to revive its fortunes. Most recently, Sir Dave has served as Chair of Haleon, a global leader in consumer healthcare, a role he will step down from on December 31, 2025. He’s also been a non-executive board director of PepsiCo. Notably, Sir Dave was knighted in the 2021 New Year’s Honours list, a testament to his impact on British business.
Industry watchers say Sir Dave’s appointment signals a likely shift in strategy—one that’s less about long-term reinvention and more about immediate stabilization. Dan Coatsworth, investment director at AJ Bell, told BBC, “Dave Lewis needs to get Diageo back on track quickly. He’s known for listening carefully to customers and suppliers to identify problems. His immediate focus will be on stabilizing the business rather than driving long-term growth.”
Coatsworth also recalled that Sir Dave earned the nickname "Drastic Dave" during his time at Unilever, thanks to his willingness to make bold decisions rather than rely on superficial fixes. "At Tesco, he left after declaring the company stabilized, rather than staying on to lead its next phase of growth. It’s likely he’ll take a similar approach at Diageo," Coatsworth added.
Diageo’s woes are not unique in the consumer goods sector. The company’s struggles in the US and China reflect broader trends: inflation and economic uncertainty have made consumers more cautious, while shifting cultural attitudes have led many—especially younger adults—to moderate their alcohol consumption. According to BBC, even though Guinness sales have continued to grow, the rest of Diageo’s portfolio hasn’t been able to offset the declines elsewhere.
Yet, there are glimmers of hope. The share price bounce following Sir Dave’s appointment shows that investors still believe in Diageo’s underlying strengths: its brands remain household names, and the company’s global reach gives it a fighting chance to adapt. The board’s decision to bring in a crisis-tested leader suggests a willingness to embrace tough choices in the months ahead.
For now, Nik Jhangiani—who stepped in as interim CEO after Debra Crew’s sudden exit—will return to his previous role as Chief Financial Officer. Deirdre Mahlan, who returned as interim CFO during the leadership transition, will continue to support the company through this handover.
As the drinks giant faces into 2026, all eyes will be on Sir Dave Lewis and the steps he takes to steady the ship. Will "Drastic Dave" live up to his reputation and steer Diageo back to growth? The stakes are high, and the world will be watching.
