Diageo, the world’s largest spirits company, has appointed former Tesco chief executive Dave Lewis as its new CEO, ending months of speculation over who would take the helm amid mounting investor pressure to revive the group’s declining fortunes.
Lewis, 60, will officially join the maker of Johnnie Walker whisky and Guinness beer in January 2026, succeeding interim chief executive Nik Jhangiani, who will return to his role as chief financial officer. The announcement triggered an immediate market reaction, with Diageo shares jumping nearly 8% on Monday — a rare boost for a stock that has lost roughly 27% of its value this year and remains near decade lows.
The appointment follows a turbulent period for Diageo, which recently downgraded its sales and profit forecast for fiscal 2026. The group has been grappling with rising tariffs in the United States — its largest market — a shifting consumer trend away from alcohol among younger generations, and a heavy debt load that reached $21.9 billion as of June.
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Credit rating agency Fitch downgraded Diageo’s long-term outlook to “negative” in September, citing high leverage and ongoing uncertainty surrounding global trade and tariffs.
A Reputation for Turnarounds
Lewis earned the nickname “Drastic Dave” during his decades-long career for his ability to turn around struggling businesses through bold restructuring, cost-cutting, and sharp marketing strategy.
As CEO of Tesco from 2014 to 2020, Lewis inherited a supermarket giant rocked by an accounting scandal that wiped billions off its value. By 2018, he had restored Tesco’s profitability, regained its market leadership, and simplified operations by streamlining product lines, improving relationships with suppliers, and lowering prices.
Before Tesco, Lewis spent over 30 years at Unilever, where he built a reputation as a strategic brand manager known for blending commercial discipline with creative marketing.
“Dave Lewis is unusual in combining a deep understanding of brands with objectivity, pace and grit,” Reuters quoted a former Tesco executive who worked closely with him as saying. “Not many sector leaders could have turned Tesco around, but Lewis did.”
Analysts welcomed Diageo’s decision to bring in an external leader. “We think this is a good move,” said James Edwardes Jones of RBC Capital Markets, calling Lewis’ appointment a “pleasant surprise.”
Kai Lehmann, senior analyst at Flossbach von Storch — a top 20 Diageo shareholder — described Lewis as an ideal fit.
“It may not require drastic change at Diageo, but the brands’ appeal needs to be revitalized at a time when the industry is facing structural headwinds,” Lehmann said.
A Company in Transition
Lewis’ arrival marks a pivotal moment for Diageo, which has faced leadership instability and sluggish performance since the death of longtime CEO Ivan Menezes in 2023. Menezes’ tenure saw Diageo thrive on post-pandemic premiumization trends as consumers splurged on spirits like Don Julio tequila and Johnnie Walker Blue Label.
His successor, Debra Crew, struggled to sustain that momentum amid softening demand in key markets, particularly in North America. Crew’s abrupt departure earlier this year left Jhangiani as interim CEO, while Diageo searched for a long-term leader capable of navigating a more challenging environment.
The company’s challenges go beyond shifting consumer habits. Analysts say Diageo must also address its exposure to volatile emerging markets, where currency depreciation and inflation are squeezing profits. At the same time, the company faces pressure to deleverage its balance sheet and adapt to a younger, health-conscious consumer base increasingly turning to low- and no-alcohol beverages.
Lewis’ Task Ahead
Lewis, who was knighted in 2021 for his services to business, also served briefly as the UK government’s supply chain adviser during the COVID-19 pandemic, helping to stabilize essential goods distribution during widespread disruption, according to Reuters.
He currently serves as chair of consumer healthcare group Haleon, a position he will step down from at the end of the year to take up the Diageo role.
In his first statement as CEO-designate, Lewis signaled optimism but acknowledged the challenges ahead.
“The market faces some headwinds, but there are also significant opportunities. I look forward to working with the team to face these challenges and realize some of the opportunities in a way which creates shareholder value,” he said.
Investors are hoping that Lewis’ track record of decisive leadership and operational discipline will restore Diageo’s growth trajectory. His priority, analysts say, will likely include cutting costs, streamlining operations, refocusing marketing on key global brands, and possibly divesting underperforming assets to reduce leverage.
If his Tesco turnaround is any indication, Diageo may soon see the same playbook of efficiency, brand revitalization, and pragmatic restructuring that earned him his “Drastic Dave” nickname — a reputation that could prove vital as the world’s largest spirits maker tries to reclaim its lost sparkle.