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\t\t“Drastic” Dave Lewis is set to make his mark on Diageo (Joe Giddens\/PA Wire)\t<\/p>\n\t\t\tTuesday 04 August 2026 10:48 am
\n\t\t\t\t\t\u00a0|\u00a0\u00a0Updated:\u00a0<\/p>\n
\t\t\tTuesday 04 August 2026 11:29 am\n\t<\/p>\n
\t\t“Drastic” Dave Lewis is set to make his mark on Diageo (Joe Giddens\/PA Wire)\t<\/p>\n
Putting the finishing touches to Diageo\u2019s annual report, Sir Dave Lewis may be channelling the old slogan of the drinks giant\u2019s prize brand, Guinness: \u2018Good things come to those who wait\u2019.\u00a0<\/p>\n
Since Lewis began his tenure as chief executive of the FTSE 100 firm on New Year\u2019s Day, investors have heard very little from him. Though the former Tesco boss was nicknamed \u201cDrastic Dave\u201d for his bold approach to management at Britain\u2019s biggest grocer, Lewis\u2019 regime at Diageo has so far been calmer.\u00a0<\/p>\n
The drinks seller, which also owns Johnnie Walker, Smirnoff and Captain Morgan, will attract the attention of the City on Thursday \u2013 not for its top-line numbers, but for its strategy review, which is expected<\/a> to reveal swingeing job cuts worthy of Lewis\u2019 moniker. What can investors expect from the Guinness owner\u2019s long-awaited update?<\/p>\n Lewis took charge of Diageo following a rocky 12 months for the business, marred by a long hangover of waning demand and operational missteps. His predecessor, Debra Crew, abruptly quit<\/a> after just two years in charge and the company posted<\/a> a $200m (\u00a3153m) hit from US tariffs just weeks before he took the reins.\u00a0<\/p>\n Cautious start for Drastic Dave<\/p>\n In February, Lewis\u2019 first outing as chief executive struck a markedly restrained tone. He halved<\/a> the group\u2019s dividend in a bid to shore up its balance sheet but his drastic acts stopped there. Quizzed by analysts on why his next market update was scheduled as late as this year\u2019s third quarter, Lewis was careful to lower expectations of a slash-and-burn approach to cost-cutting.<\/p>\n Lewis had already visited Diageo headquarters in North America, Latin America, Europe, the Middle East and India, but reminded investors he had yet to spend time in Africa and Asia: \u201cI just want to make sure that I\u2019ve got the firmest of foundations in understanding the business we have today.\u201d<\/p>\n The drinks group\u2019s half-year numbers were dogged by an \u201cincreasingly competitive and cautious\u201d consumer environment in the US and slowing sales in China, as many of the problem areas for Crew threatened to haunt her successor.\u00a0<\/p>\n \t\t\t\t\tRead more<\/p>\n \t\t\tScotch whisky sales are falling, but what\u2019s really behind the decline?<\/a><\/p>\n The Diageo boss set out some areas of focus for his reign \u2013 including adapting to changing alcohol habits among younger generations and solving the company\u2019s \u201cvery poor\u201d customer service \u2013 but the detail of his vision for the alcohol giant has only begun to emerge in recent weeks.\u00a0<\/p>\n \u2018Funereal atmosphere\u2019 as job cuts loom<\/p>\n Behind the doors of Diageo headquarters in Soho, Lewis has begun rebuilding the firm in his image. Sir Dave told his executives to slash headcount across their divisions, with \u201cnon-revenue-generating\u201d teams on the chopping block.\u00a0<\/p>\n The impending redundancies were spreading a \u201cfuneral home atmosphere\u201d inside the company\u2019s offices, one insider told The Financial Times<\/a>. Sir Dave has begun building his new top team, recruiting former Unilever colleague Marc Woodward to lead his domestic arm and tapping<\/a> Procter & Gamble executive Sujay Wasan to head up the Asia-Pacific operation.<\/p>\n Beyond headcount, a key headwind that Sir Dave will need to address is the pinch on discretionary spending which is pushing consumers to trade down from up-market products.\u00a0<\/p>\n The chief executive has praised Diageo\u2019s \u201cpremiumisation\u201d drive towards a stable of high-end brands led by former boss Sir Ivan Menezes. But Lewis has suggested he plans to cut prices and said he will work on the group\u2019s offering of smaller pack sizes in a bid to squeeze Diageo products into consumers\u2019 rapidly tightening shopping baskets.\u00a0<\/p>\n \u201cThere is some evidence of customers trading down to cheaper alternatives, which provides an immediate headwind to Diageo\u2019s premiumisation aspirations,\u201d said Richard Hunter, Interactive Investor\u2019s head of markets. \u201cIt remains to be seen whether the concerns overhanging the sector as a whole are cyclical or societal.\u201d<\/p>\n There are some bright spots for Drastic Dave. Guinness\u2019s meteoric market share gains in recent years show no signs of reversing, and the firm\u2019s share price ticked up into a year-to-date gain for the first time late last week. Diageo\u2019s full-year figures are likely to be boosted by the World Cup, and the drinks maker can hope for a further uplift in the Autumn as punters reach for a pint of the black stuff when temperatures start to drop.<\/p>\n \t\t\t\t\tRead more<\/p>\n