Guinness maker Diageo picks new CEO after US tariffs cloud
Source: AFP
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Diageo, the maker of Guinness beer and Smirnoff vodka, announced Monday a new chief executive as it seeks to improve performance hit partly by US President Donald Trump's tariffs.
Dave Lewis, presently chairman of consumer healthcare firm Haleon, will become CEO in January, replacing Debra Crew after her resignation in July.
"The market faces some headwinds but there are also significant opportunities," Lewis, 60, said in a Diageo statement.
"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," added the former CEO of British supermarket giant Tesco.
Shares in Diageo, which makes also Johnnie Walker whisky, Baileys liqueur and Don Julio tequila, surged seven percent in early deals to lead London's top-tier FTSE 100 index, up 0.7 percent overall.
"Lewis brings deep experience in consumer brands from his time leading Tesco and decades at Unilever, though he lacks direct exposure to the spirits industry," noted Matt Britzman, senior equity analyst at Hargreaves Lansdown.
"Investors may welcome his strong marketing pedigree, but any major strategic reset will take time, leaving near-term focus on navigating tough trading conditions."
The group last week gave a profit warning as it cautioned over weaker consumer demand in China and the United States, pressuring its share price which has tumbled this year.
Nik Jhangiani, who was Diageo's chief financial officer but took on the CEO role on an interim basis, will revert to his former position.
While no reason was given for Crew's departure after two years in the top job, Diageo had experienced a tough trading environment and announced in May that it faced a financial hit from Trump's tariffs onslaught.
Source: AFP
