A former boss of Tesco has been appointed to the top job of Guinness-Owner of the owner, as the biggest strong drinks in the world that wants to go through the world sales.
Sir Dave Lewis will take over the Brewing giant on 1 January, after chief executive Debra Crew stepped down in the summer after two years in charge.
The company has been battling weak sales in its range despite sales growth at Guinness, with shares recently falling to a 10-year low.
Following the announcement of Sir Dave Deve’s appointment on Monday, Diageo’s share price rose 7% in early trading.
Diageo has well-known brands including Johnnie Walker Whisky, Smirnoff Vodka and Captain Rum, but has seen sales fall in key markets, particularly the US and China.
Sir Dave was Chief Executive of Tesco for six years until 2020, and previously spent almost 30 years at the grocery giant. He will leave his current role as Chairman of Health Firm Haleon.
Diageo said its board Sir Dave felt had a number of senior executives and proven leadership skills “that are right for Diageo at this time”.
“The market is facing some headwinds but there are also significant opportunities,” said Sir Dave.
“I look forward to working with the team to face these challenges and identify some opportunities in a way that creates shareholder value.”
Diageo saw revenue rise by £3.2bn in the year to June – some 28% lower than the same period a year ago. It said there was “clearly more to do” in what it called a challenging year, citing “consumer pressure”.
Rising inflation has led people to tighten their spending in recent times, with consumers cutting back on drinking and eating.
The company is also battling changing drinking habits from younger people, who choose to drink less alcohol than previous generations.
“Dave Lewis needs to sell quickly to get back on track,” said Dan Coatsorth, Head of Markets at AJ Bell.
“His style is to listen carefully to customers and suppliers and do what’s wrong. Fixing work, not long-term growth.
“At Tesco, he walked away saying his job to strengthen the business, instead of continuing to go to business the Secor Way.”
Sir Dave replaces Nik Jhangiani – the previous chief financial officer – who has been acting as interim chief executive since Ms Crew resigned in July.
Mr. Jhangiani will return as chief financial officer.