Drastic Dave Takes the Helm at Diageo

Diageo has named former Tesco boss Dave Lewis as its new CEO, with hopes of reviving its performance amid industry challenges. Known for cost-cutting and innovative strategies, Lewis' appointment comes as a surprise and aims to boost growth and manage debt.

In a strategic move, Diageo has appointed former Tesco CEO Dave Lewis to lead the world's largest spirits company, known for brands like Johnnie Walker and Guinness. Lewis, dubbed 'Drastic Dave' for his reformative methods at Tesco, will assume the role in early 2026, ending much speculation about the company's leadership succession.

The appointment sparked a 7% surge in Diageo's share price, marking the biggest one-day gain since 2020. Investors are optimistic about Lewis' track record in revitalizing companies through efficient cost management and innovative market approaches, crucial for Diageo, which recently downgraded its sales forecasts and is navigating steep competition and shifts in consumer trends.

Lewis succeeded interim CEO Nik Jhangiani, who will return as finance chief. Lewis, lauded by Diageo's board for his leadership acumen, faces the challenge of boosting growth in the U.S. and secure the company against mounting debt levels, seeking to emulate the remarkable expansion seen under previous CEO Ivan Menezes.

(With inputs from agencies.)