Guinness Maker Names Former Tesco Chief to Lead Turnaround Effort

The owner of Guinness, Diageo, has appointed former Tesco chief executive Sir Dave Lewis as its new CEO, as the drinks giant moves to reverse a decline in sales across several of its key markets.

Sir Dave is set to assume the role on 1 January. He replaces Debra Crew, who stepped down in the summer after two years in the position. Diageo had been led on an interim basis by chief financial officer Nik Jhangiani.

Diageo, which also produces Johnnie Walker whisky, Captain Morgan rum and Smirnoff vodka, has faced slowing sales particularly in the United States and China. Despite continued growth in Guinness, the firm recently reported weaker performance across several product categories, pushing its share price to a 10-year low.

The company said its board selected Sir Dave for his “proven leadership experience” and track record steering major consumer brands. Shares in Diageo rose around 7% in early trading following confirmation of his appointment.

Sir Dave led Tesco between 2014 and 2020, where he was credited with stabilising the supermarket chain after a major accounting scandal. Before that, he spent nearly three decades at Unilever. His decisive management style during previous corporate turnarounds earned him the nickname “Drastic Dave”.

Speaking on Monday, Sir Dave acknowledged the challenges ahead but said the business also held significant potential. “The market faces headwinds but also real opportunities,” he said. “I look forward to working with the team to unlock value.”

In the year to June, Diageo reported operating profits of £3.2bn, down 28% from the previous year, with net sales slipping slightly. The company has warned that growth in the coming year is likely to remain flat or decline modestly, citing a weakened U.S. consumer environment, pressures on household spending, and shifting drinking habits among younger demographics.

Market analysts say Sir Dave’s priority will be to stabilise performance rather than pursue major expansion. Dan Coatsworth, head of markets at AJ Bell, said Sir Dave’s appointment signalled a “repair and reset” approach.

“He is known for taking bold decisions when necessary,” Coatsworth said. “The expectation is that he will move quickly to address what has gone wrong.”

Sir Dave will work alongside Jhangiani, who returns fully to his chief financial officer duties once the leadership transition is complete.