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Chief executive officers

Diageo Prepares to Replace CEO Amid Declining Alcohol Sales and Share Price

Strategic Insights

— 1 min read

Diageo, the parent company of Johnnie Walker, Guinness, and Smirnoff, is on the verge of replacing Chief Executive Officer Debra Crew as the company struggles with declining alcohol sales and a sharp share price decline. Despite a 2.8% increase in shares to 1,940.50 pence in London on Wednesday, the company's performance under Crew has been lackluster, with a 43% decline in its share price since her tenure began in June 2023. The board is actively searching for a new chief to lead a turnaround, with Chief Financial Officer Nik Jhangiani being considered as a potential interim CEO.

Key Takeaways:

  • Diageo is preparing to replace CEO Debra Crew due to declining alcohol sales and a sharp share price decline, with the board actively searching for a new chief.
  • Chief Financial Officer Nik Jhangiani is being considered as a potential interim CEO, having impressed some major investors with his USD500 million cost-cutting plan unveiled in May.
  • Diageo has struggled with weaker demand post-pandemic and investor concerns over whether the downturn is cyclical or structural.
  • The company's share price decline is most notable, having dropped 43% since Crew's tenure began in June 2023.
  • Diageo's performance has been marred by a profit warning, scrapped growth targets, and investor worries about the company's long-term prospects.
  • Jhangiani's cost-cutting plan and potential asset disposals may be key strategies in revitalizing the company's fortunes.
  • The FTSE 100-listed group has faced significant challenges in the post-pandemic era, including changes in consumer behavior and increased competition.

Statistics:

  • Diageo's share price has declined by 43% since Crew's tenure began in June 2023.
  • The company's share price increased 2.8% to 1,940.50 pence in London on Wednesday.
  • Diageo has implemented a USD500 million cost-cutting plan under Jhangiani's leadership.
  • The company has scrapped its growth targets and issued a profit warning during Crew's tenure.
  • Diageo's share price has fallen significantly, despite the company's iconic brands and global presence.

Sources:

  • (Financial Times)
  • (Alliance News reporter)
  • (Diageo PLC)

References:

  • Financial Times, "Diageo to replace CEO amid share price decline and weak sales" (2023).
  • Alliance News, "Diageo Prepares to Replace CEO Amid Declining Alcohol Sales and Share Price" (2025).
  • Diageo PLC, (Press Release) (2023).

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