Diageo CEO Debra Crew steps down by mutual agreement

Diageo has announced its chief executive Debra Crew is to step down by mutual agreement.

The London-listed supplier said its CFO Nik Jhangiani would assume the role of CEO on an interim basis while a replacement was sought.

“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,” said Diageo chair John Manzoni. “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.”

The announcement came less than an hour after reports emerged that Diageo was seeking a successor for Crew, who failed to convince investors she was the right candidate to turn around Diageo’s fortunes. 

She departs after just over two years at the helm, having taken charge of Diageo following the death of Ivan Menezes.

Her tenure was characterised by mixed performance – just five months in, Diageo was forced to issue a profit warning after sales unexpectedly slumped in Latin America.

The company has struggled to return to pandemic sales highs and saw sales decline by 0.6% in the full year ended 30 June 2024. 

Diageo returned to growth in the first six months of its current financial year, but scrapped medium-term sales targets amid uncertainty over the impact of US tariffs and weak consumer confidence. 

The supplier has outlined plans to cut $500m in costs by 2028. Speaking to investors in May, Jhangiani hinted major brands could be sold as part of the shake-up. 

“Through our reviews that we’ve been doing internally and with the board, we see opportunities for what I would call substantial changes versus portfolio trimming,” he said. “I can’t say much more than that but clearly it is going to be above and beyond the usual smaller brand disposals that you’ve seen over the last few years.”

Shares in Diageo rose by more than 3% after reports of Crew’s departure broke, and shot up again once her exit was confirmed.