Diageo’s CEO Steps Down After Two-Year Tenure: Ivan Menezes Exits Guinness Owner Company

Diageo, the globally prominent spirits conglomerate, has announced that Chief Executive Officer (CEO) Debra Crew will be departing the company effective immediately, following a mutual agreement reached between both parties. This transition comes at a time when the alcohol industry is experiencing stagnant sales, impacting Diageo’s flagship brands such as Johnnie Walker whiskey, Casamigos tequila, and Guinness beer, in addition to looming threats of increased tariffs from the United States.

In a press statement issued by the London-based firm, it was noted that Crew will be succeeded on an interim basis by Nik Jhangiani, Diageo’s current Chief Financial Officer (CFO), while the company embarks on a comprehensive search for a permanent successor.

Sir John Manzoni, Chairman of Diageo’s Board, expressed gratitude towards Crew for her leadership in navigating the challenging post-pandemic landscape, marked by geopolitical and macroeconomic volatility.

Since Crew’s appointment as CEO in June 2023, Diageo’s stock (DEO) has experienced a decline of approximately 44% in value. In May, Crew unveiled a strategic plan aimed at achieving cost savings of $500 million over the next three years and potential divestment of some brands.

The alcohol industry as a whole is grappling with a significant drop in sales since the Covid-19 pandemic, which led to an increase in household liquor stocks. This downward trend has compelled certain companies, including Woodford Reserve maker Brown-Forman, to implement workforce reductions.

In addition to these industry-wide challenges, Diageo has encountered its own obstacles, such as oversupplying alcohol to Latin American markets as demand waned and a Guinness beer shortage in UK pubs. In the United States, Diageo’s Casamigos and Don Julio tequilas are embroiled in a class action lawsuit alleging false labeling as “100% agave,” an accusation that the company vigorously denies.