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FTSE 100 drinks giant Diageo's shares have surged following the announcement of a new chief executive officer, renowned for turning around struggling companies. Shares climbed 6.8 per cent in early morning trading to 1,845 pence, recovering from their steep decline last Thursday after the group's most recent trading update. The board has chosen Sir Dave Lewis to assume the position of chief executive and executive director from 1 January 2026, citing his "extensive marketing" expertise as key to his appointment. Lewis held the position of Group chief executive at Tesco from 2014 to 2020, before taking on the chairmanship of global healthcare firm Haleon in 2022 and becoming a non-executive board director at Pepsi Co.. He will relinquish his position at Haleon on 31 December 2025, as reported by City AM. Sir John Manzoni, Diageo's chair, said "Having conducted an extensive and thorough global search, the Board unanimously felt that Dave has both the extensive CEO experience and the proven leadership skills in building and marketing world-leading brands, that is right for Diageo at this time. "We are confident Dave will work with the team to take Diageo into its next successful chapter in the evolving consumer environment." Prior to his time at Tesco, Lewis spent almost three decades at packaged goods firm Unilever, predominantly in executive committee positions. During his tenure at Unilever, Lewis earned the nickname "Drastic Dave" due to his drastic management decisions, which included reducing the company's product range from 1600 to 400 and implementing job cuts. These measures resulted in a 40% decrease in group expenditure in 2007. Lewis is also credited with turning around Tesco's fortunes after the supermarket's sales were hit by the horse meat scandal and competition from discount retailers Aldi and Lidl. He mended relationships with suppliers and engaged with employees in an effort to restore the supermarket's reputation. Interim Diageo CEO Nik Jhangiani, who stepped into the role following Debra Crew's departure in July after a two-year stint, will return to his position as CFO in January. Deirdre Mahlon, who came back to Diageo as interim CFO, has confirmed her support for the company during this transition period. Commenting on the challenges ahead, Lewis said: "The market faces some headwinds but there are also significant opportunities. "I look forward to working with the team to face these challenges and realise some of the opportunities in a way which creates shareholder value." Diageo lowered its profit forecast in its most recent trading update last Thursday, following weaker than expected demand in China and the US. The group reported net sales of $4.9bn for the three months to the end of September, a decrease of 2.2 per cent compared to last year.
