Dive Brief:
- Diageo CEO Debra Crew has stepped down “by mutual agreement” after two years overseeing the maker of Guinness and Johnnie Walker.
- The London-based company said its board has started a search for Crew’s replacement and will consider internal and external candidates. Diageo CFO Nik Jhangiani will serve as interim CEO until a permanent appointment is made.
- The executive change comes as the alcohol giant battles tariffs, declining alcohol consumption, and a pullback in consumer spending due to inflation.
Dive Insight:
After taking the helm in June 2023, Crew has faced a series of challenges that have pressured sales and weighed on Diageo’s stock price. Shares of the company have dropped about 40% since she became CEO.
In February, Diageo pulled its medium-term sales growth due to macroeconomic and geopolitical uncertainty, then announced two months later it would cut $500 million in costs.
Crew joined Diageo as a non-executive director in 2019 before becoming president of its North American business and then ascending to chief operating officer.
During her tenure as CEO, she boosted the company’s presence in nonalcoholic offerings with the purchase of Ritual Zero Proof Non-Alcoholic Spirits and moved to distance Diageo from its legal dispute with rapper Sean “Diddy” Combs. Diageo traded ownership of Combs’ Cîroc Ultra-Premium Vodka in North America for a majority stake in Lobos 1707 Tequila, a brand backed by NBA star LeBron James.
Crew’s successor will have a lot to contend with, including changes in alcohol consumption, tariffs on imported spirits, and potential divestitures. Jhangiani in May said the company was planning “substantial changes” to its portfolio that would go “beyond the usual smaller brand disposals” the company has done over the past three years.
“The Board’s focus is on securing the best candidate to lead Diageo and take the company forward,” John Manzoni, Diageo’s chair, said in a statement. “We strongly believe Diageo is well placed to deliver long-term, sustainable value creation.”
The food and beverage space has been impacted recently by a series of CEO changes, with some individuals being forced out and others retiring following a long tenure. In the past several months, Nestlé, Hain Celestial, Hershey, and Unilever have announced changes in the top post.
