LONDON (ShareCast) - (Sharecast News) - Former Tesco boss Dave Lewis is to take over as chief executive of Diageo, the drinks giant confirmed on Monday, sending shares in the Guinness owner sharply higher.
Lewis, the current chair of consumer healthcare group Haleon, will take up the role on 1 January 2026.

It will be the first chief executive role he has taken since leaving Tesco in 2020, having successfully turned the then-struggling grocer around during his six-year tenure.

He replaces Debra Crew at Diageo. She quit in the summer after a difficult period for the firm, including falling alcohol sales, supply chain issues and an under-pressure share price.

Chief financial officer Nik Jhangiani has been at the helm since then on an interim basis, and had been seen as a potential candidate for the role full time. He will revert to finance chief from January, Diageo confirmed.

Last week Diageo - which also owns Johnnie Walker, Smirnoff and Don Julio tequila, among many others - cut its outlook, blaming lacklustre demand for spirits in China and soft demand in the US.

The profits warning sent the shares sharply lower.

However, as at 1100 GMT on Monday, the stock was 8% higher at 1,861.05p, as investors welcomed the appointment.

In a statement, Diageo said that Lewis - who prior to joining Tesco had spent three decades at Unilever - was a "proven chief executive with extensive marketing and brand-building experience".

John Manzoni, chair, added: "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 a marketing world-leading brands, that is right for Diageo."

Lewis will be paid £1.5m and a pension contribution of 14% of base salary. Details of his full future package, including bonuses, will be included in next year's remuneration report

Lewis said he was "delighted" to be joining the blue chip, adding: "The market faces some headwinds, but there are also significant opportunities."

Haleon, meanwhile, announced that independent director Vindi Banga will replace Lewis as chair of consumer healthcare firm.



Dan Coatsworth, head of markets at AJ Bell, said: "Diageo has pulled a blinder by hiring the man who saved Tesco.

"This is a significant hire and a pleasant surprise.

"Diageo is juggling two key problems, one internal and one external. Issues in Latin America pointed towards poor management insight, as Diageo appeared to take its eye of the ball and didn't know how much stock was in the supply chain.

"Shifting consumer habits also caught the company off guard, with weaker demand for premium spirits and the rise of younger people less interested in alcohol.

"Lewis needs to put Diageo back on track quickly."

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