FTSE100 giant Diageo to replace CEO Debra Crew as sales slide

Diageo will replace 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 FTSE 100 giant has confirmed that Crew has quit with immediate effect and will be replaced on an interim basis by the embattled drinks group’s finance boss Nik Jhangiani.

The company behind Johnnie Walker and Guinness said on Wednesday that its board had kicked off a “comprehensive formal search process” for a new chief executive.

The Financial Times first reported the move, with shares in the company later rising as much as 4.3 per cent after Crew’s exit was confirmed.

Who is interim chief Nik Jhangiani?

Since joining last September from Coca-Cola Europacific Partners, Jhangiani has won support from key shareholders after unveiling a $500m (£400m) cost-cutting plan and signalling a willingness to explore asset disposals.

He has 25 years of experience at C-suite level, starting with a role as CFO at Coca-Cola HBC in 2000.

The heavyweight CFO “[brought] fresh perspectives on cost discipline, cash and returns and execution,” Jeffries analysts said.

The presence of Jhangiani was enough for analysts to improve their investment case for the drinks manufacturer, which has struggled to convince investors the problems it faces are short not long term.

There have been concerns that an alcohol-shy generation is coming into their own, and that increased usage of GLP-1 weight loss drugs like Ozempic will turn users off alcohol.

Shares in Diageo rose nearly five per cent in the week after Jhangiani was announced as CFO, amid a period of wider decline.

Debra Crew’s short tenure at Diageo

Crew’s promotion to the top job was accelerated after former CEO Ivan Menezes, who had planned to retire, passed away unexpectedly following emergency surgery.

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.

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