Diageo’s departure from CEO Debra Crew by mutual agreement comes after a tumultuous two-year tenure marked by several key challenges. Crew inherited the role following Sir Ivan Menezes’ retirement, a position that was difficult to fill due to his exceptional corporate strategy of “premiumisation,” which drove significant profit margins year-over-year.
However, Crew struggled to match Menezes’ success, particularly with regards to her communication on the company’s initial profits warning in November 2023. The warning, caused by overstocking in Latin America, shocked investors and raised questions about Diageo’s ability to accurately forecast demand.
Furthermore, Crew waited too long to adjust the company’s financial guidance, which was no longer aligned with changing market trends following the pandemic. The spirits market became increasingly cautious, leading to disappointing sales numbers that fell short of Crew’s projected “medium-term” growth of 5% to 7%.
Additionally, Crew’s departure coincides with the arrival of a new chair in February, Sir John Manzoni, which added pressure to her role as CEO. Despite the company’s efforts to reduce costs by $500m (£370m), it has been criticized for not doing enough to address its operations.
Crew’s exit comes at a time when Diageo is facing broader macroeconomic challenges, including a weakened spirits market and Gen Z’s lower appetite for alcohol. However, some question whether the company can do more to help itself, given its annual sales base of $20bn. The company’s debt ratios still need to be brought within the desired range by 2028.
New finance director Nik Jhangiani is now seen as a frontrunner to succeed Crew, but whoever takes over must prioritize a clearer-eyed focus on Diageo’s long-term strategy and operations.
Source: https://www.theguardian.com/business/nils-pratley-on-finance/2025/jul/16/debra-crew-couldnt-shift-diageos-post-covid-hangover