Diageo searches for new CEO following leadership shakeup

Diageo's leadership change follows disappointing performance and investor concerns.

Diageo begins search for new CEO as profits decline

Diageo, the owner of popular brands like Guinness and Johnnie Walker, is seeking a new chief executive following the resignation of Debra Crew. Her departure, agreed upon mutually, comes amid investor dissatisfaction stemming from a profits warning and declining sales, particularly in Latin America. Crew, who took charge after Ivan Menezes' passing, faced challenges with supply chain mismanagement and a downturn in consumer spending. The company's interim chief, Nik Jhangiani, is now at the helm while Diageo looks for both internal and external candidates for the permanent position. Following news of Crew's resignation, Diageo's share price initially rose by over 3% but eventually lost most of those gains, highlighting continued investor uncertainty. The company has struggled with ambitious growth targets, recently revising them down due to external economic pressures, including tariffs from former U.S. President Donald Trump.

The departure of Debra Crew highlights a critical juncture for Diageo as it navigates a shaky recovery post-pandemic. Investors appear wary of the company's ability to adapt to changing consumer behaviors and economic realities. The incoming CEO will need to tackle not just internal challenges but also external pressures such as tariffs and competition from other beverage firms. Analysts suggest the new leadership could pursue quicker, more robust changes to restore confidence among investors and align the brand with market demands.

Highlights

The upcoming leadership change may redefine Diageo's path forward in a challenging market.