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Chief executive officers

Diageo Replaces Debra Crew Amidst Turmoil

Strategic Insights

— 2 min read

Diageo, the manufacturer of popular brands like Johnnie Walker and Guinness, has announced the departure of its CEO Debra Crew just over a year into her tenure. Crew's exit comes as the company struggles to regain investor confidence following a period of falling sales and a sharp decline in its share price. The company has confirmed that Crew has quit with immediate effect and will be replaced on an interim basis by finance boss Nik Jhangiani. Jhangiani, who has been with Diageo since September, has been praised by analysts for his cost-cutting plan and willingness to explore asset disposals.

Key Takeaways:

  • Debra Crew has resigned as CEO of Diageo, effective immediately, marking the end of her tenure just over a year into the job.
  • Nik Jhangiani, the company's finance boss, will take over as interim CEO while a comprehensive search process for a new CEO is conducted.
  • Jhangiani has been praised by analysts for his $500m cost-cutting plan and willingness to explore asset disposals, including the potential sale of Guinness.
  • Crew's departure is seen as a positive move by investors, with shares in Diageo rising by as much as 4.3% after the announcement.
  • Diageo's share price has fallen by 43% since Crew took over, with the company struggling to convince investors that its problems are short-term rather than long-term.
  • The company has faced challenges from a shift in consumer behavior, with concerns that increased usage of GLP-1 weight loss drugs like Ozempic will turn users off alcohol.
  • Jhangiani has 25 years of experience at C-suite level, including a role as CFO at Coca-Cola HBC in 2000, where he was praised for his cost discipline and execution.

Statistics:

  • Diageo's share price has fallen by 43% since Debra Crew took over as CEO.
  • Shares in Diageo rose by as much as 4.3% after Crew's exit was confirmed.
  • The company has reported a steep drop in earnings guidance, forcing Crew to issue a profit warning within five months of taking over as CEO.
  • Diageo's share price has risen nearly five percent in the week after Jhangiani was announced as CFO.

Sources:

  • "Diageo looks to luxury to drive growth" by City A.M., linked from https://www.cityam.com/
  • "Diageo share price rises as investors breathe a sign of relief" by City A.M., linked from https://www.cityam.com/
  • "Diageo to explore asset disposals as cost-cutting plan unveiled" by Financial Times, linked from https://www.ft.com/content/aef5c197-6353-4b60-9232-8e9f6f1695e5

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