Following earlier reports, it was confirmed yesterday afternoon that Debra Crew had stepped down from her role as Chief Executive of drinks giant Diageo.
She took on the position in the summer of 2023 following the sudden death of long-time boss Sir Ivan Menezes. After a bumpy start to her tenure, she has struggled to win over investors following a profit warning, scrapped growth targets, and an over 40% decline in the company’s share price.
Diageo, which owns brands such as Johnnie Walker and Guinness, has struggled with weaker demand post-pandemic as high inflation and interest rates prompted consumers to cut spending. There has also been a marked shift by younger people away from alcohol consumption.
The company is now in the midst of a turnaround drive and in May unveiled a plan to cut $500m in costs and make substantial asset sales by 2028 to reduce debt.
Diageo stated that 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.
Until a permanent appointment is made, Nik Jhangiani, the group’s Chief Financial Officer, will assume the role of CEO on an interim basis. The company noted that it had begun a formal search process, which will include consideration of internal and external candidates.
Analysts suggested that Jhangiani was a prime candidate for the permanent role. He is among the most highly respected finance chiefs in the sector, who has been regarded as potential CEO material for some time.
“Whoever gets it, we don’t think Diageo’s problems will be easily resolved,” said RBC Capital Markets analyst James Edward Jones.
John Manzoni, who became Diageo’s Chairman in February, commented: “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.”
