The owner of Guinness and Johnnie Walker, Diageo, shares jumped over 7% in trade on Monday, after the firm named former Tesco boss Sir Dave Lewis as chief executive officer. Lewis will take charge of the drink maker with effect from 1 January 2026. Lewis replaces Debra Crew, who stepped down in July 2025 after a troubled spell marked by falling sales, supply-chain issues, and investor frustration.
From Tesco to the spirit’s sector
Lewis ran Tesco between 2014 and 2020, and before that spent almost three decades at Unilever. At Tesco, Lewis oversaw a major turnaround, helping the supermarket chain from a profit-misstatement crisis. He helped refocus the business, cut debt and pushed value to the front. His Unilever tenure included launching brands and cost rationalisation, earning him the nickname “Drastic Dave”, a Reuters report.
Lewis steps in at a time when the going gets tougher for Diago. The stock has been trading under pressure, slipping to about a decade low as sales in key markets such as the U.S. and China faltered and the company issued a profit warning. The company has also been marred with rising input costs, trade headwinds, and changing consumer preferences, especially in spirits.
Source: LSE
In the interim, CFO Nik Jhangiani served as acting CEO and will return to his CFO role after December. He was considered as the frontrunner for the post. Meanwhile, Lewis will step down from his role as chair at FTSE 100 consumer healthcare company Haleon and will be paid a salary of £1.5mn, an FT report claimed. Investors have given this appointment a thumbs up and are cautious optimistic, hoping that Lewis’s track recordcan bring about a serious turnaround at Diageo.