Dave Lewis, the former head of British supermarket chain Tesco, will become CEO and chief executive of alcohol giant Diageo, which produces Guinness and Johnnie Walker, effective Jan. 1, 2026, the company said.
Lewis was CEO of Tesco from 2014 to 2020 and led a major transformation of the business. Prior to that, he spent nearly three decades at Unilever, most recently on the executive committee. There, he was nicknamed Drastic Dave - "Resolute Dave" - for his drive to revitalize the business through cost-cutting and unconventional marketing, Reuters writes.
On the background of this news, Diageo shares jumped by 7.7% - it became the largest one-day growth since November 2020. The company's shares have lost 27% since the beginning of the year.
Why it's important.
Investors expect the new CEO to reduce Diageo's debt load and present a plan to restore growth amid weak consumer demand, higher duties in the U.S. - Diageo's largest market - and increasing competition from soft drinks, Reuters noted. News of the appointment comes as the Guinness maker worsened its revenue and profit forecast, citing weakening consumer demand in the U.S. and China.
"We think this is a good move," wrote RBC Capital Markets analyst James Edwards Jones, calling Lewis' appointment a "pleasant surprise." "We met Dave when he was at Unilever - and have been impressed. Our retail team also speaks highly of him," he added.
"Dave has a wealth of experience in consumer markets and has led a skillful turnaround of Tesco, which was in dire straits. He has great credibility with shareholders, who will be very reassured by his appointment," Bloomberg quoted Samuel Johar, chairman of British board consulting firm Buchanan Harvey, as saying.
Lewis left Tesco after transforming the UK supermarket chain and cementing its position as the undisputed market leader. During his six-year tenure, he sold some assets and abandoned the company's excessive global ambitions, Reuters reports.
This article was AI-translated and verified by a human editor
