Diageo has announced CEO Debra Crew has stepped down “by mutual agreement”.
In a stock-exchange filing this afternoon UK time, the Johnnie Walker owner said CFO Nik Jhangiani would step in “on an interim basis” while it sought a new chief executive.
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Earlier today (16 July), The Financial Times reported today (16 July) the spirits giant’s board was planning to replace Crew who became CEO in June 2023.
Citing an unnamed source, the FT said a possible candidate was the recently installed Jhangiani.
In the filing, Diageo chair John Manzoni said: “On behalf of Diageo and the board, I would like to thank Debra for her contributions to Diageo, including steering the company through the challenging aftermath of the global pandemic and the ensuing geopolitical and macroeconomic volatility.
“On behalf of all Diageo colleagues, I wish her every success in the future. The board’s focus is on securing the best candidate to lead Diageo and take the company forward. We strongly believe Diageo is well placed to deliver long-term, sustainable value creation.”
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By GlobalDataCrew took the helm at the UK-listed group in June 2023, moving up from the position of COO. In November that year, Diageo issued a profit warning amid pressure on its business in Latin America.
In the 12 months to the end of June, the Guinness owner saw its net sales fall 1.4% and dip 0.6% organically. Reported operating profit grew 8.2%, although the problems in Latin America meant organic operating profit declined.
In February, Diageo, in a move similar to other major distillers, pulled its medium-term guidance, citing “macroeconomic and geopolitical uncertainty”. The change came alongside a set of half-year numbers that included a 0.6% decrease in net sales, although they inched up 1% organically. Operating profit declined, however.
May saw the Johnnie Walker maker announce it was looking to save around $500m in costs over the next three years as part of efforts to become more “agile” and “resilient”.
Diageo said the move would help the company invest in “future growth” and improve its “operating leverage”.
Jhangiani, who joined the company from Coca-Cola Europacific Partners in September, said at the time the group could make “substantial changes” to its product portfolio in the form of asset disposals.
During Crew’s tenure, Diageo has offloaded assets including rum brands Cacique and Pampero and Safari liqueur. The group has also sold assets in Africa, although last October it reportedly called off the sale of its Pimm’s gin-based liqueur after failing to secure an agreement with potential buyers.
The business said the cuts were part of a broader initiative – dubbed ‘Accelerate’ – that will see “a shift in how we do business”, including developing a “more agile global operating model”.
Diageo’s share price, which has fallen by more than 40% since Crew became CEO, was up 1.8% on the day at 1,922p at 13:27 BST.
