Guinness-owner Diageo CEO step downs after tough two years, finance chief to lead in interim

[LONDON] Diageo CEO Debra Crew has stepped down after just two years in the job, the world’s biggest spirits maker said on Wednesday (Jul 16), with finance chief Nik Jhangiani taking over in the interim as the company strives to boost its performance and cut debt.

Shares in the maker of Johnnie Walker whisky and Guinness beer rose about 3 per cent after the Financial Times first reported the news. They were among the top percentage gainers on Britain’s blue-chip FTSE 100 index.

Diageo said Crew was leaving immediately by mutual agreement. It did not give further details but said it was maintaining its forecasts for fiscal 2025 and 2026.

The company is in the midst of a turnaround drive and in May unveiled a plan to cut US$500 million in costs and make substantial asset sales by 2028.

Crew had been in the top role for just about two years after long-time boss Ivan Menezes’ death in June 2023 following a brief illness. She was one of only a handful of women to lead a blue-chip UK company.

Crew was previously Diageo’s chief operating officer.

The company’s shares lost about 44 per cent of their value during her tenure.

“Debra has had a tough couple of years at the helm of Diageo and hopefully some new leadership will help to reinvigorate the company,” said Fred Mahon, fund manager at Diageo investor Church House.

Still, Diageo’s shares have been among the better performers in the European wine and spirits sector, which has struggled after a boom during the pandemic when people drank more at home.

Under Crew, Jhangiani joined Diageo as chief financial officer in September last year as the company struggled with falling sales and wavering investor confidence. It is also facing a possible hit from US tariffs.

Crew and Jhangiani did not immediately respond to requests for comment on LinkedIn. REUTERS