Troubled drinks giant Diageo names former Tesco boss to lead turnaround push

Published: 10 November 2025 | The English Chronicle Desk | The English Chronicle Online

The global drinks powerhouse Diageo, best known for Guinness and Johnnie Walker, has appointed former Tesco chief executive Dave Lewis to lead the company through one of the most challenging periods in its recent history. Lewis, credited with steering Tesco out of a deep financial crisis a decade ago, will officially assume the role of Diageo’s chief executive on 1 January 2026.

The move marks a decisive step for Diageo’s board as the FTSE 100-listed drinks giant seeks to reverse a turbulent year that has seen its share value tumble by nearly a third. Lewis, who spent six transformative years at Tesco and almost 30 years at Unilever before that, is widely regarded as a seasoned turnaround specialist capable of stabilising large-scale operations under pressure.

Lewis takes over from Debra Crew, who stepped down in July after a difficult two-year stint marked by investor dissatisfaction and sluggish performance. A former U.S. military intelligence officer, Crew’s tenure saw the company grappling with declining demand, supply chain bottlenecks, and geopolitical trade headwinds that severely dented profits.

Diageo’s interim chief, Chief Financial Officer Nik Jhangiani, had been considered a strong contender for the top job. He will remain in charge until the end of 2025 before resuming his role as CFO, ensuring a smooth transition.

The appointment of Lewis follows a tumultuous period for Diageo. In 2023, the company issued a shock profits warning after an unexpected slowdown in alcohol sales post-Covid, particularly in Latin America. The drinks maker misjudged regional demand, leaving itself overstocked and struggling to supply key markets like the UK, where Guinness had to be rationed in pubs last Christmas. Combined with rising costs and trade tariffs imposed by former U.S. President Donald Trump, the setbacks exposed serious weaknesses in Diageo’s global supply strategy.

As a result, the firm scrapped its long-term sales growth targets earlier this year and warned investors that revenue in 2026 would likely remain flat or dip slightly. The news sent shockwaves through the market, with Diageo’s valuation slipping to its lowest level in nearly a decade.

Lewis’s appointment, however, has sparked cautious optimism among shareholders and analysts. His track record at Tesco remains one of the most respected corporate turnarounds in British business. When he joined the supermarket giant in 2014, Tesco was mired in scandal and debt, following an accounting crisis that had wiped billions off its market value. Within five years, Lewis had stabilised the company, halved its £22bn debt, refocused on customer satisfaction, and rebuilt investor confidence.

Sir John Manzoni, chair of Diageo’s board, praised Lewis’s appointment, describing him as the right leader for the company’s “next successful chapter.” He said: “Having conducted an extensive and thorough global search, the board unanimously agreed that Dave has the ideal combination of CEO experience, brand leadership, and commercial acumen to guide Diageo through the evolving consumer environment.”

Lewis expressed enthusiasm for the role, calling Diageo “a world-leading business with an incredible heritage.” He added, “While the market faces some headwinds, there are also significant opportunities to grow our brands, strengthen our global presence, and deliver long-term value for our shareholders.”

Lewis’s experience leading consumer-focused companies like Unilever and Tesco is expected to help Diageo sharpen its operational focus and marketing strategies. Analysts believe his pragmatic leadership style could restore investor faith and help modernise the drinks giant’s global business model to align with shifting consumer habits, particularly among younger, health-conscious drinkers.

Beyond his new role, Lewis will step down as chair of Haleon, the consumer health firm spun out of GSK in 2022, effective 31 December. Under his tenure, Haleon established itself as a leading player in the wellness sector. His departure prompted Haleon to announce Vindi Banga, its senior independent director, as his successor.

Banga, who previously worked with Lewis during their time at Unilever, also chairs UK Government Investments Limited and serves on the boards of GSK and Marks & Spencer. A partner at U.S. private equity firm Clayton, Dubilier & Rice, Banga played a pivotal role in the £7bn acquisition of Morrisons in 2021 and brings decades of corporate expertise to Haleon’s board.

For Diageo, the arrival of Lewis signals the beginning of a critical turnaround phase. With the global drinks industry facing tightening regulations, fluctuating consumer trends, and economic uncertainty, the company’s next steps under his leadership will be closely watched. Analysts say the key challenge for Lewis will be balancing Diageo’s premium brand image with affordability and relevance in a volatile global market.

Lewis’s appointment has already been welcomed by industry observers as a sign that Diageo’s board is serious about transformation. His proven ability to cut through complexity, drive operational efficiency, and rebuild stakeholder trust may provide exactly the leadership the drinks giant needs to regain its footing in the post-pandemic economy.