Diageo Appoints Former Tesco Chief Dave Lewis as CEO Amid U.S. Tariff Pressures
Diageo, the British‑based global spirits and beer powerhouse behind iconic brands such as Guinness, John Walker & Sons (Johnnie Walker), Smirnoff, and Tanqueray, announced Monday that it has selected former Tesco chief executive Dave Lewis to serve as its new chief executive officer.
The appointment comes at a pivotal moment for the company, which is grappling with a challenging market environment highlighted by a significant tariff burden imposed by the United States on imports from the UK and Europe.
The decision to bring in an outsider follows a period of heightened volatility for Diageo.
Earlier this year, the firm warned that the 10 percent U.S. tariff on its products could shave roughly US$150 million from annual operating profit, a figure that has already prompted the company to launch a sweeping cost‑saving initiative and to revise its medium‑term growth targets.
The new “Accelerate” program aims to generate US$3 billion in free cash flow annually by fiscal 2026 while delivering US$500 million in cost reductions over three years.
Lewis, 60, is credited with steering Tesco through a dramatic turnaround after a major accounting scandal, earning the nickname “Drastic Dave” for his aggressive cost‑cutting and market‑re‑shaping strategies. His tenure saw Tesco regain market leadership and deliver sustained profit growth. Speaking on his appointment, Lewis said the market presents both formidable headwinds and “significant opportunities,” and he looks forward to collaborating with Diageo’s leadership to revitalize brand appeal and drive shareholder value.
The move follows the abrupt departure of former CEO Debra Crew, who stepped down after a two‑year term marked by sluggish sales in key markets such as the United States and heightened debt levels. Interim finance chief Nik Jhangiani, who had been considered a candidate for the top job, will resume his role as CFO next year.
Diageo’s share price reacted positively, rising nearly 8 percent on the news, though the stock remains far below its pre‑pandemic highs, reflecting ongoing investor concerns over tariffs, debt, and shifting consumer preferences toward lower‑alcohol alternatives.
The company’s board expressed confidence that Lewis’s blend of brand expertise, operational rigor, and turnaround experience positions Diageo to navigate the current turbulence and restore long‑term growth. Analysts caution, however, that execution of the cost‑cutting plan and mitigation of tariff impacts will be critical in the near term.
