- by Quentin Flambé
- on 11 Nov, 2025
When Diageo named Dave Lewis as its next chief executive, the message was clear: the maker of Guinness and Johnnie Walker is in crisis—and it’s betting everything on a retail turnaround expert.
From Supermarkets to Spirits
Dave Lewis, knighted for services to business and former CEO of Tesco, will step into the top job at Diageo on January 1, 2026. He’s leaving his chairmanship at Haleon, the consumer health spinoff from GSK, where he’s been since 2022. His appointment ends a six-month interim period led by Nik Jhangiani, Diageo’s CFO, who stepped in after Debra Crew resigned abruptly in July 2025. Crew, the first woman to lead Diageo, had taken over following the sudden death of Sir Ivan Menezes in June 2023.
What makes this unusual? A supermarket veteran taking the helm of a global spirits giant. But that’s exactly why the board chose him. Lewis turned Tesco around after its 2014 slump—cutting costs, revamping stores, and rebuilding trust with shoppers. Now, Diageo needs that same grit. Its shares have dropped 22% since January 2024. Sales in the U.S. and China, which together account for nearly 40% of its premium spirits revenue, are falling. A trading update on November 7, 2025, warned investors that volume growth for the fiscal year would likely be negative. The market didn’t cheer the CEO news—it dropped another 3.2% on November 10, the day of the announcement.
Why Lewis? The Board’s Calculated Gamble
Diageo’s chairman, John Manzoni, led a global search that considered internal candidates and external names alike. He didn’t just want a drinks expert—he wanted someone who understood mass-market appeal, retail dynamics, and how to make luxury brands feel accessible again.
"Having conducted an extensive and thorough global search, the board unanimously felt that Dave 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," Manzoni said. And it’s true: Lewis spent nearly 30 years at Unilever, where he managed brands like Marmite and Ben & Jerry’s. He knows how to sell products in crowded aisles, negotiate with Walmart and Amazon, and make consumers care again.
Diageo’s portfolio—Guinness, Smirnoff, Baileys, Captain Morgan—isn’t broken. It’s just tired. Younger drinkers are shifting to low-alcohol options, craft spirits, and non-alcoholic alternatives. In China, regulatory pressure and changing social habits have hurt premium whiskey sales. In the U.S., inflation has made $60 bottles of Johnnie Walker feel like a luxury, not a staple.
The Turnaround Challenge
Lewis won’t have a honeymoon. His first 90 days will be brutal. He inherits a company that’s lost investor confidence, a supply chain stretched thin across 180 countries, and a marketing team that’s still clinging to traditional ads instead of TikTok-driven storytelling.
His immediate tasks? Reassess pricing in North America, rethink distribution in China, and launch a bold, modern brand campaign that doesn’t feel like it was created in 2008. He’ll also need to decide whether to sell underperforming assets—perhaps some of Diageo’s smaller regional brands—to focus on the big hitters.
One insider told me: "He’s not here to fix the distilleries. He’s here to fix the way we talk to people who buy them." That’s the real shift. Diageo hasn’t had a CEO who speaks the language of retail since the 1990s. Lewis does. He’s the guy who made Tesco’s Clubcard a loyalty powerhouse. He understands data, shelf space, and customer behavior better than any former distillery manager.
What’s Next?
By March 2026, Lewis is expected to unveil a formal turnaround plan. The board will be watching closely for three things: whether he can stabilize sales in the U.S. by Q2, whether he repositions Guinness as a lifestyle brand beyond pubs, and whether he can make Diageo’s supply chain more agile.
There’s also the question of culture. Diageo’s leadership has been dominated by drinks industry insiders. Lewis, by contrast, comes from a world where margins are thin and customer loyalty is fragile. He’ll need to win over a skeptical workforce—many of whom see him as an outsider. But he’s not new to that. When he took over Tesco, employees called him "the supermarket surgeon."
His first public appearance as CEO will be at the company’s annual investor day in February 2026. If he can turn that room from skeptical to hopeful, he’ll have already won half the battle.
Historical Context: Diageo’s Long Slide
Diageo’s troubles didn’t start in 2025. The company has been under pressure since 2021, when post-pandemic demand for premium spirits faded faster than expected. By 2023, its share price had fallen 18% year-over-year. Under Sir Ivan Menezes, the company leaned hard into premiumization—charging more for higher-end bottles. It worked… until it didn’t.
Debra Crew tried to pivot toward sustainability and digital marketing, but her efforts were overshadowed by falling volumes. The November 2025 trading update was the final nail: Diageo now expects its global volume sales to decline by 1% to 2% for the fiscal year ending June 30, 2026. That’s the first negative volume growth in over a decade.
Compare that to competitors: Brown-Forman (Jack Daniel’s) grew volume in the U.S. by 2.1% last quarter. William Grant & Sons (Glenfiddich) launched a successful low-alcohol line. Diageo? Still trying to convince people that a $120 bottle of Lagavulin is worth it.
Frequently Asked Questions
Why did Diageo pick a supermarket CEO instead of a drinks industry veteran?
Diageo’s board believes the problem isn’t production—it’s sales. With volumes falling in key markets like the U.S. and China, they need someone who understands mass-market retail, pricing pressure, and how to rebuild consumer trust. Dave Lewis turned Tesco around by focusing on customer experience and value—not just brand prestige. That’s exactly what Diageo lacks right now.
How will Dave Lewis’s Unilever background help Diageo?
At Unilever, Lewis managed iconic brands like Marmite and Dove, which faced declining relevance among younger consumers. He learned how to modernize legacy brands without losing their heritage—exactly what Diageo needs with Guinness and Johnnie Walker. He also has experience scaling digital marketing and direct-to-consumer strategies, areas where Diageo has lagged behind competitors like Brown-Forman.
What’s the biggest risk in hiring Dave Lewis?
The biggest risk is cultural mismatch. Diageo’s leadership has been dominated by distillers, blenders, and brand historians. Lewis comes from a world of discount pricing, loyalty cards, and supply chain efficiency. If he’s perceived as too corporate or too focused on cost-cutting, he could alienate the very teams that make Diageo’s products special. His success hinges on balancing retail pragmatism with the romance of whiskey-making.
When will we know if this move is working?
Look for signs by Q2 2026. If Diageo’s U.S. sales stop declining and Guinness starts gaining traction in non-pub channels—like grocery stores and online delivery—it’ll be a win. The company’s next earnings report in February 2026 will include Lewis’s first strategic preview. If he outlines a clear plan to cut costs without diluting brand value, investors will start to believe.
Is Diageo’s decline part of a larger trend in the alcohol industry?
Yes. Premium spirits are facing headwinds globally. In the U.S., younger consumers are drinking less alcohol overall, and when they do, they’re choosing craft beer, wine, or non-alcoholic options. In China, government anti-excess campaigns and shifting social norms have hurt luxury alcohol sales. Even giants like Pernod Ricard and Bacardi are trimming forecasts. Diageo’s challenge isn’t unique—it’s just more visible because of its size.