Shares in FTSE 100 beverages conglomerate Diageo have experienced a dramatic surge following the announcement of a new chief executive officer renowned for rescuing troubled corporations.
The company's stock jumped 6.8 per cent during early morning trading to reach 1,845 pence, marking a significant recovery from last Thursday's sharp decline triggered by the group's latest trading update.
The Turnaround Specialist Takes Charge
Diageo's Board has selected Sir Dave Lewis to assume the roles of chief executive officer and executive director effective 1 January 2026, highlighting his extensive marketing background as a key factor in his appointment.
Lewis previously served as Group chief executive of Tesco from 2014 to 2020, before taking on the chairmanship at global healthcare company Haleon in 2022 and a non-executive board director position at PepsiCo. He will formally step down from his role at Haleon on 31 December 2025.
Sir John Manzoni, Diageo's chair, commented: "Having conducted an extensive and thorough global search, the Board unanimously felt that Dave has both the extensive CEO experience and the proven leadership skills in building and marketing world-leading brands, that is right for Diageo at this time."
"We are confident Dave will work with the team to take Diageo into its next successful chapter in the evolving consumer environment," Manzoni added.
The 'Drastic Dave' Legacy
Before his transformative period at Tesco, Lewis dedicated nearly thirty years to packaged goods corporation Unilever, primarily occupying executive committee positions.
Lewis earned the nickname "Drastic Dave" during his Unilever tenure, reflecting his decisive management approach that included slashing the company's product range from 1,600 to 400 items and implementing workforce reductions.
These bold measures ultimately resulted in a remarkable 40 per cent reduction in group expenditure during 2007.
Lewis also masterminded Tesco's remarkable recovery after sales were severely impacted by the horse meat scandal in beefburgers and intense competition from discount rivals Aldi and Lidl.
He successfully repaired relationships with suppliers and engaged directly with employees to restore the supermarket chain's tarnished reputation.
Navigating Current Challenges
Interim chief executive Nik Jhangiani, who assumed leadership following Debra Crew's departure in July after merely two years in charge, will return to his position as chief financial officer in January.
Deirdre Mahlon, who rejoined Diageo as interim chief financial officer, has committed to supporting the company throughout this transitional phase.
Lewis acknowledged the road ahead, stating: "The market faces some headwinds but there are also significant opportunities."
"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," he added.
The company, whose extensive portfolio includes iconic brands Guinness and Baileys, recently lowered its profit guidance in last Thursday's trading update, citing weakened demand in crucial markets China and the United States that damaged sales projections.
The group reported net sales of $4.9bn for the three months ending September, representing a 2.2 per cent decrease compared to the same period last year.
