By Aimee Look


Diageo appointed Dave Lewis as its new chief executive, tapping a former Tesco boss to revitalize the booze giant as it grapples with diluted demand in the U.S. and China.

The U.K. company behind Johnnie Walker whisky, Guinness beer and Baileys Irish Cream liqueur said on Monday that Lewis would take over the position from interim CEO Nik Jhangiani on Jan. 1, ending a monthslong search that began with the departure of former boss Debra Crew.

Shares in Diageo rose more than 7% in early U.K. trading, but the stock was still down by more than a quarter since the start of the year.

Several consumer-facing companies have shuffled around leadership this year, as consumers tightening their pockets after years of inflation, changing drinkers' tastes and uncertainty about President Trump's tariffs created a challenging backdrop. Companies including Unilever, Procter & Gamble, Hershey and Imperial Brands have replaced their top executives since the start of the year.

With Lewis's appointment, Diageo turns to an executive with decades of consumer experience. He served as CEO of U.K. grocer Tesco from 2014 to 2020, and previously spent almost 30 years at Unilever, Diageo said. Most recently, he was chairman of Sensodyne maker Haleon since its creation in 2022, a position from which he will step down on Dec. 31, Diageo said.

"The board unanimously felt that Dave [Lewis] has both the extensive CEO experience, and the proven leadership skills in building and marketing world-leading brands, that is right for Diageo at this time," Diageo Chairman John Manzoni said.

Diageo has been looking for ways to inject growth into its business, tussling with changing drinking habits and high inflation--which in tandem have watered down spirits consumption. The Don Julio maker last week slashed its full-year guidance, citing a weaker-than-expected consumer backdrop in its biggest market--the U.S.--and lower white spirit sales in China.

"The market faces some headwinds but there are also significant opportunities," Lewis said.

Diageo parted ways with Crew, its CEO for two years, in July. Crew was promoted to the top role after the death of longtime chief Ivan Menezes in 2023, but her tenure was marked by a pullback in alcohol spending following a boom during the pandemic and afterward. A major profit warning shortly after her appointment hurt investors' confidence in Diageo, and the company struggled to get them on board amid lackluster results that were compounded by uncertainty about tariffs in her last few months in the role.

Some analysts had previously said the prolonged CEO search was causing unease among investors, but Lewis's appointment was well received. Lewis's track record of being a catalyst for cultural change in his former positions might make him capable of reviving growth at the beverage company, RBC analysts said in a note to clients Monday. Analysts at J.P. Morgan said Lewis was seen as a safe pair of hands.

Diageo said its interim CEO Jhangiani will return to his role as chief financial officer when Lewis takes the reins. Deirdre Mahlan, who was brought back to Diageo in August to fill the CFO position in the interim, will continue to support the company through the transition, it added.


Write to Aimee Look at aimee.look@wsj.com


(END) Dow Jones Newswires

11-10-25 0459ET