Guinness owner Diageo parts ways with boss after tough two years

The chief executive of Diageo has left by “mutual agreement” after a tough two years at the helm of the FTSE 100 drinks firm.

Debra Crew, who took over in the summer of 2023 following the sudden death of long-time boss Sir Ivan Menezes, had come under pressure from investors over performance.

Shares in the maker of Johnnie Walker whisky and Guinness stout, during her time in charge, had plunged by more than 40%.

They gained more than 3%, and were leading the FTSE 100, when the Financial Times first reported that her departure was imminent.

It was later confirmed by the company, which gave no reasons for the move.

Diageo only said that it was sticking to its forecasts for this year and next and that Ms Crew would be replaced, on an interim basis, by chief financial officer Nik Jhangiani.

The share price, which has outperformed rivals despite its struggles, reflects the post pandemic decline in people drinking at home.

Some analysts have suggested that she did not convince shareholders over Diageo’s strategy in the wake of this shift, with a turnaround plan revealed in May, which aimed to slash costs, seen as failing to go far in enough.

Some investors had sought a greater focus on disposal of non-core brands.

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However, the stock has also struggled on the back of threats posed by the US trade war.

Diageo’s 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.”