Diageo taps former Tesco boss 'Drastic Dave' Lewis to lead fightback

Former Tesco brag Sir Dave Lewis is to go the caller main enforcement of Diageo, the struggling FTSE 100 drinks giant.

The world's largest spirits maker, which counts Guinness and Johnnie Walker whisky among its unchangeable of brands, said helium would presume the relation successful January.

The hunt for a caller brag began successful July erstwhile Debra Crew was efficaciously ousted aft 2 years successful charge.

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The company's stock terms fell 40% during her tenure arsenic the manufacture grappled a drastic diminution successful the fig of radical drinking astatine location pursuing the COVID pandemic.

A planned fightback by Ms Crew was seen by investors arsenic failing to spell acold enough.

Sir Dave led a six-year turnaround of Tesco, the UK's biggest retailer, from 2014.

He earned the nickname 'Drastic Dave' successful his erstwhile relation astatine Unilever, the user goods giant, wherever helium was credited with achieving akin occurrence done cost-cutting and targeted marketing.

Diageo's marketplace positions person fared amended than rivals during the downturn but its shares are inactive hovering astir lows not seen for a decade.

Only past week, the institution downgraded its income and nett outlook for adjacent year.

Diageo seat John Manzoni told investors: "The Board unanimously felt that Dave has some the extended CEO experience, and the proven enactment skills successful gathering and selling world-leading brands, that is close for Diageo astatine this time."

Sir Dave said of the task facing him: "Diageo is simply a satellite starring concern with a portfolio of precise beardown brands, and I americium delighted to beryllium joining the team.

"The marketplace faces immoderate headwinds but determination are besides important opportunities. I look guardant to moving with the squad to look these challenges and realise immoderate of the opportunities successful a mode which creates shareholder value."

Diageo shares were 7% up connected quality of the appointment.

Matt Britzman, elder equity expert astatine Hargreaves Lansdown, responded: "Lewis brings heavy acquisition successful user brands from his clip starring Tesco and decades astatine Unilever, though helium lacks nonstop vulnerability to the spirits industry.

"Investors whitethorn invited his beardown selling pedigree, but immoderate large strategical reset volition instrumentality time, leaving near-term absorption connected navigating pugnacious trading conditions."