(qlmbusinessnews.com . Tue 11th Nov, 2025) London, UK —
Diageo Names Former Tesco Chief Sir Dave Lewis as New CEO Amid Sales Challenges
Sir Dave Lewis, formerly of Tesco, has been named the new chief executive of Diageo, the world’s largest drinks company and owner of Guinness, amid efforts to revive the firm's declining sales.
Appointed to spearhead the beverage titan starting 1 January, Sir Dave’s takeover follows Debra Crew’s departure earlier this summer, after her two-year tenure as chief executive.
Despite an uptick in Guinness sales, Diageo has contended with dampened sales figures across its portfolio, which led to a noticeable slump in its share value to a decade low. However, with the revelation of Sir Dave’s appointment on Monday, there was an immediate 7% surge in Diageo’s stock price in early market activity.
Nicknamed ‘Drastic Dave’, his leadership tenure includes six years as Tesco's chief executive until 2020, and nearly three decades at Unilever. Sir Dave will be leaving his position as chairman of Haleon, a health firm, to join Diageo.
Diageo, home to distinguished labels like Johnnie Walker whisky, Smirnoff vodka, and Captain Morgan rum, has been confronting sales challenges, notably in crucial markets like the US and China. In response to these challenges, Diageo praised Sir Dave’s profound CEO experience and leadership capabilities as precisely what the company needs at this juncture.
Sir Dave remarked on the potential within the market's adversities and opportunities, committing to driving shareholder value through tackling these challenges and seizing opportunities.
The past financial year witnessed Diageo’s operational profits drop to £3.2bn, a roughly 28% decrease from the previous year, alongside a marginal dip in net sales. The company acknowledged the necessity for more extensive efforts in what it described as a trying year, highlighting the “pressure on consumers”.
Anticipating the year ahead, Diageo predicted stagnation or a slight decrease in net sales growth, attributing this to a subdued US consumer climate and dwindling sales in China. Consumer spending has been restrained due to rising inflation, affecting out-of-home drinking and dining activities.
Moreover, Diageo is navigating shifts in the drinking preferences of younger demographics, who are increasingly opting for reduced alcohol consumption.
Market observer Dan Coatsworth, from AJ Bell, emphasized the urgent need for Sir Dave to realign Diageo, noting his reputation for understanding customer and supplier needs and implementing significant, rather than incremental, changes. Coatsworth highlighted Sir Dave’s prior departure from Tesco after stabilizing the company, suggesting a possibly similar strategy at Diageo.
Sir Dave is set to take over from Nik Jhangiani, Diageo’s chief financial officer, who has been filling in as interim chief executive since Ms Crew stepped down in July.
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