Diageo Appoints Former Tesco Boss Sir Dave Lewis as CEO
Sir Dave Lewis has been named the next CEO of Diageo, the FTSE 100 beverages company that makes Guinness, Johnnie Walker, Smirnoff, and Baileys. The decision shows that the corporation is making a big effort to turn things around after two tough years of falling sales, supply problems, and unhappy investors.
Lewis, who is most known for leading Tesco through one of the biggest crises in company history, will formally take up the job on January 1, 2026. He will replace Debra Crew, who stepped down in July after a difficult time in charge.
A Turnaround Veteran Takes the Helm
Lewis, who was known as “Drastic Dave” at Unilever for his constant cost-cutting, is largely credited with saving Tesco from 2014 to 2020. After revealing an accounting scandal that almost brought the shop down, he cut debt, made operations easier, and brought back profits.
His hiring is considered a big win for Diageo, which has lost a third of its market value this year because of sluggish demand and dismal results. After the news came out, Diageo’s stock price went up 7%, which was good news for investors.
Challenges Facing the Drinks Giant
Diageo’s sales were up during the epidemic, but they have since slowed down throughout the world and changed in ways that are especially noticeable among younger people who drink less. The corporation warned of weaker profitability in 2023 and again in late 2025, predicting that sales would stay the same or drop marginally in 2026.
The firm has also been hurt by US trade tariffs, problems with its supply chain, and problems with its inventories in Latin America. When people thought there would be more demand than there was, markets ended up with too much stock. In the UK, bars had to ration Guinness over the 2024 holiday season because there wasn’t enough of it.
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Leadership Transition and Investor Reaction
Nik Jhangiani, Diageo’s chief financial officer, will stay on as temporary CEO until Lewis takes over. Analysts argue that Lewis’s hiring gives the faltering corporation fresh confidence and strategic legitimacy.
Sir John Manzoni, the head of Diageo, supervised the selection process. He said that Lewis was the perfect person to take the firm into its “next successful chapter” as consumer preferences change. Lewis himself said that Diageo is facing “headwinds,” but it also has “significant opportunities” to go back on the path to development.
A Storied Career in Consumer Goods
Lewis worked at Unilever for almost thirty years before joining Tesco. There, he oversaw numerous key product divisions and built a reputation as a rigorous, marketing-savvy operator. He knows a lot about price strategy, customer loyalty, and global supply chains because he has worked with a lot of consumer brands. Diageo needs to stabilize all of these areas.
Since 2022, Lewis has also been in charge of Haleon, the consumer health firm that GSK split out. He will leave his job as an operating adviser at the US private equity company Clayton, Dubilier & Rice, which controls Morrisons, on December 31 to start his new job at Diageo.
Market Reaction and Analyst Outlook
People who watch the market say that Lewis’s entry marks a turning moment for Diageo. Matt Britzman, a senior stock analyst at Hargreaves Lansdown, said that investors would probably like Lewis since he has “deep experience in consumer brands” and has shown he can handle crises well. However, he also stated that Lewis “lacks direct exposure to the spirits industry.”
Analysts think that Lewis’s background in marketing might boost Diageo’s worldwide image, but it will take time to make any big changes. The first thing to do is deal with weak demand and reestablish investor trust following a rough patch for one of Britain’s most famous corporations.
A Company at a Crossroads
Lewis steps in to lead Diageo at a very important time. As global spending gets tighter, the corporation is under pressure to find a balance between making things more expensive and keeping them affordable. At the same time, it needs to change to keep up with new drinking patterns and competition from new alcohol-free options.
Investors seem to be at ease for now because a CEO with a history of bringing companies back to life has been chosen. Diageo is facing two big problems: it has to bring back growth and come up with a new strategy. The appointment of Sir Dave Lewis might be the start of a new chapter for the famous drinks company.
