Guinness maker Diageo picks new CEO after US tariffs woes

Diageo, the producer of Guinness beer and Smirnoff vodka, announced on Monday the appointment of a new chief executive as it aims to enhance performance affected in part by tariffs imposed by US President Donald Trump.

Dave Lewis, currently the chairman of consumer healthcare company Haleon, will assume the role of CEO in January, succeeding Debra Crew following her resignation in July.

"The market is encountering some challenges, but there are also considerable opportunities," Lewis, 60, stated in a Diageo announcement.

"I am eager to collaborate with the team to tackle these challenges and seize some of the opportunities in a manner that generates shareholder value," added the former CEO of the British supermarket chain Tesco.

Shares of Diageo, which also produces Johnnie Walker whisky, Baileys liqueur, and Don Julio tequila, rose seven percent in early trading, leading London’s premier FTSE 100 index, which was up 0.7 percent overall.

"Lewis possesses extensive experience in consumer brands from his tenure at Tesco and decades at Unilever, although he does not have direct experience in the spirits sector," remarked Matt Britzman, a senior equity analyst at Hargreaves Lansdown.

"Investors may appreciate his robust marketing background, but any significant strategic overhaul will require time, leaving the immediate focus on managing challenging trading conditions."

Last week, the group issued a profit warning as it expressed concerns over declining consumer demand in China and the United States, which has pressured its share price that has fallen this year.

Nik Jhangiani, who previously served as Diageo’s chief financial officer and temporarily took on the CEO position, will return to his former role.

While no explanation was provided for Crew’s exit after two years in the top position, Diageo had faced a difficult trading landscape and announced in May that it anticipated a financial impact from Trump’s tariff measures.