Can Diageo's New CEO Steer a Successful Turnaround?

Diageo has confirmed the appointment of Sir Dave Lewis, former Group CEO of Tesco, as its new CEO and Executive Director, effective 1 January 2025. The announcement concludes an extended leadership search following the surprise departure of previous CEO Debra Crew in July.

CFO Nik Jhangiani has held the position of interim CEO since's Debra exit and will continue in the role through to the end of December, before returning to his finance responsibilities.

Dave enters the role with a reputation for restoring stability and strengthening operational performance across major global businesses. He is expected to bring this experience to Diageo, the world’s largest spirits producer, to help address ongoing market challenges.

The company faces ongoing pressure after reporting a drop in net sales for the full financial year 2024, with performance in Latin America and the Caribbean showing particular weakness. Diageo also posted a decline of approximately 2.2% in net sales for the first quarter of FY2026, reflecting a difficult start to the year.

Sir John Manzoni, Chair of the Board at Diageo, says: “We are delighted to welcome Dave as Diageo's new CEO. Having conducted an extensive and thorough global search, the board unanimously felt that Dave has both the extensive CEO experience and proven leadership skills in building and marketing world-leading brands that is right for Diageo at this time."

Track record in business transformation

Dave brings experience built across global consumer industries, with a career defined by disciplined cost control, strategic marketing and brand building.

From 2014 to 2020, he led Tesco through a large-scale turnaround, driving operational efficiency and streamlining the business. The supermarket giant closed 43 unprofitable stores and narrowed its portfolio, resulting in improved profitability in the UK and Republic of Ireland, with its operating margin rising by 59 basis points.

Before Tesco, Dave spent more than 30 years at Unilever, where his focus on cost structure and targeted marketing earned him the nickname 'Drastic Dave'. This commercial discipline proved influential in delivering better margins and competitive positioning.

In addition to executive leadership, Dave has held strategic governance roles, serving as Chair of global consumer healthcare leader Haleon and as a supply chain adviser to the UK Government during the COVID-19 pandemic. 

“Diageo is a world-leading business with a portfolio of very strong brands and I am delighted to be joining the team," comments Dave.

"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."

Changing of the guard

Debra departed Diageo by mutual consent just two years after joining the business. Her exit came amid business volatility and prior to a decline in reported sales. 

Speaking at the time, John said: “On behalf of Diageo and the board, I would like to thank Debra for her contributions to Diageo, including steering the company through the challenging aftermath of the global pandemic and the ensuing geopolitical and macroeconomic volatility. 

“On behalf of all Diageo colleagues, I wish her every success in the future. The board’s focus is on securing the best candidate to lead Diageo and take the company forward. We strongly believe Diageo is well placed to deliver long-term, sustainable value creation.”

With Dave confirmed to take the lead, Diageo signals a new chapter for its leadership and business strategy. The board has entrusted him with stabilising performance, supporting growth across global markets and reinforcing the company’s reputation for delivering high-value brands such as Guinness and Johnnie Walker.

From January, Dave will be expected to implement an approach shaped by commercial efficiency and disciplined brand development, in line with his past success at Tesco and Unilever.