FTSE 100 giant Diageo to replace CEO Debra Crew
Diageo is preparing to replace its chief executive, Debra Crew, just over a year into her tenure, as the drinks giant struggles to regain investor confidence following a turbulent period marked by falling sales and a sharp decline in its share price.
The board of the FTSE 100-listed firm has begun a search for her replacement to lead a turnaround, the Financial Times reported.
Crew, who was appointed in June 2023 following the sudden death of a long-time chief executive, Sir Ivan Menezes, has faced mounting criticism from investors over the company’s performance during her time in charge.
Nik Jhangiani, Diageo’s chief financial officer and a recent hire from Coca-Cola Europacific Partners, is being considered as a possible interim replacement.
Since joining last September, Jhangiani has won support from key shareholders after unveiling a $500m (£400m) cost-cutting plan and signalling a willingness to explore asset disposals.
Diageo has not commented on the report or confirmed any changes to its leadership.
Debra Crew’s short tenure at Diageo
Crew’s promotion to the top job was accelerated after Menezes, who had planned to retire, passed away unexpectedly following emergency surgery.
At the time, she became one of the few women leading a major UK-listed firm, bringing with her a background in consumer goods, including a stint as chief executive of the tobacco firm Reynolds American.
But her tenure has been marred by operational missteps and external headwinds.
Within five months of taking over, she was forced to issue a profit warning after Diageo misread sales trends in Latin America – a key market – leading to a steep drop in earnings guidance.
Since then, the firm has struggled to reassure investors that the challenges are cyclical, rather than structural.
Shares in Diageo have fallen 43 per cent since Crew took over, as the post pandemic boom in premium spirits gave way to weaker demand and global economic uncertainty.
Some investors have expressed frustration with Crew’s communication strategy and her failure to stem the firm’s slide.
