Sir Dave Lewis, the executive credited with steering Tesco out of its worst financial crisis, has been appointed chief executive of struggling drinks giant Diageo. The FTSE 100 company, which owns brands including Guinness, Johnnie Walker and Smirnoff, has seen its shares fall by a third this year amid a profits warning and supply chain issues.
Lewis, who ran Tesco from 2014 to 2020 and spent nearly three decades at Unilever, will take up the role on 1 January. He replaces Debra Crew, who stepped down in July after a rocky two-year tenure. Nik Jhangiani, the interim chief financial officer, will continue to lead the business until year-end before returning to his CFO role.
Diageo has faced headwinds including a post-Covid slowdown in alcohol consumption, supply chain missteps, and US trade tariffs under Donald Trump. Last week it issued a profit warning, forecasting flat or slightly lower 2026 sales, sending shares to 10-year lows. Sales were flat in the three months to 30 September, with growth in Europe and Africa offset by weak Chinese spirits and US spending.
Lewis, known as 'Drastic Dave' for his cost-cutting at Unilever, previously revived Tesco by focusing on pricing, halving its £22bn debt pile, and slashing costs. He will step down as chair of Haleon and as an operating adviser at private equity firm CD&R, but will continue to chair renewable energy company Xlinks.
Diageo shares rose 7% on the news. Sir John Manzoni, Diageo's chair, said Lewis would lead the company into its 'next successful chapter'. Lewis commented: 'The market faces some headwinds but there are also significant opportunities.'
