(Reuters) -Diageo appointed former Tesco boss Dave Lewis as its CEO on Monday, turning to an outsider to steer the world's largest spirits maker through a challenging period for the drinks industry
Diageo Appoints Dave Lewis as New CEO Amid Industry Challenges
Overview of Dave Lewis's Appointment
(Reuters) -Diageo appointed former Tesco boss Dave Lewis as its CEO on Monday, turning to an outsider to steer the world's largest spirits maker through a challenging period for the drinks industry after a months-long search.
The Johnnie Walker whisky and Guinness beer maker said Nik Jhangiani, who has served as interim CEO since July, following Debra Crew's abrupt departure, will continue in the role until the end of December and then resume as finance chief.
The company is in the midst of a turnaround plan, targeting $625 million in cost savings after underperformance shaved off more than 20% from its share price in the last 12 months.
WHO IS DAVE LEWIS?
Lewis, a 60-year-old retail veteran with nearly four decades of experience, began his career as a graduate trainee at Unilever, where he spent over 27 years in various posts, eventually becoming the Global President of Personal care in 2011.
Known as "Drastic Dave" for his bold creative strategies and strict hand at keeping costs low, Lewis helmed the UK launch of Dove, a personal care brand, along with other successful campaigns.
Lewis hung up his boots at Unilever in 2014 to head Tesco, one of Britain's biggest retailers, as its first boss to come from outside the company.
Lewis put Tesco back on track after an accounting scandal and refocused the group on its home market.
A graduate of Nottingham Trent University with a bachelor's degree in business studies, Lewis was also knighted in 2021 in recognition of his contribution to business and the food industry in the UK.
He hails from Yorkshire.
Challenges Facing Diageo
CHALLENGES AS DIAGEO'S CEO:
Lewis will take over the world's most influential spirits maker at a time when the company is struggling with weak sales in a market muddled by tariffs, high costs and changing consumer preferences.
The company cut its sales and profit forecasts last week as consumer confidence remains low in the U.S. and China, two of its most crucial markets.
The tougher industry backdrop is driving Diageo's attempt to cut costs and sell assets as the drinks industry faces cooling post-pandemic demand.
Dave Lewis's Career Path
CAREER PATH AND POSITIONS HELD:
1993 - Company Operations Manager for Lever Brothers, a Unilever subsidiary
1996 - Marketing Director, River Plate region at Unilever
2007 - 2010: Chairman, Unilever UK & Ireland
2010- 2011 : President, Unilever Americas
2011 - 2014 : Global President, Personal Care at Unilever
2014 - 2020 : Group Chief Executive Officer at Tesco
2020 - present: Non-executive director at Pepsico
2020 - present: Executive Chair at Xlinks
2020 - present: Chair of WWF-UK
2022 - present: Chair at Haleon
2024 - present: Trustee at The Royal Foundation
Key Positions Held
SOURCES: Reuters reports, Company announcements from Diageo, Unilever, Pepsico, Xlinks, Haleon, CD&R, Media reports from Fortune and The Standard, Online database PeoplePill
(Reporting by Yamini Kalia and Rishab Shaju in Bengaluru; Editing by Ronojoy Mazumdar)
