Debra Crew steps down as Diageo's CEO after turbulent tenure

In the United Kingdom, Diageo, the largest spirits producer globally, recently experienced a significant leadership change as Debra Crew resigned from her position as Chief Executive Officer. This decision, which took effect immediately, was made by mutual agreement with the board and signals the end of her two-year tenure as the head of the company. Taking over as interim CEO is Nik Jhangiani, previously the Chief Financial Officer, while a search for a permanent successor begins. Crew's departure follows a challenging period for Diageo, during which the company faced declining sales and a severely dropping stock price. The company's sales dropped for the first time in nearly four years during the 2023-24 financial year, largely attributed to a weaker performance in Latin America and potential tariffs from the United States. Diageo announced concerns about upcoming trade tariffs, including a hefty levy of 10% on UK and European exports that is expected to cost approximately $150 million annually. These circumstances have threatened Diageo's recovery following the global pandemic, during which its alcoholic beverage sales experienced unusual growth due to increased home consumption. Under Crew's leadership, Diageo's stock price plummetted by approximately 44%, culminating in almost a 50% reduction in value. This decline has alarmed investors and led to significant scrutiny of the company's strategic planning and operational direction. Crew, being the first female CEO of Diageo, previously held various high-level managerial positions in major companies such as Reynolds American and PepsiCo before her role at Diageo. Following her resignation announcement, Diageo’s stock showed a slight positive response of about 4%, reflecting a sense of hope among investors that the company could find new leadership capable of reversing its fortunes. Sir John Manzoni, the board chairman of Diageo, expressed gratitude for Crew’s efforts during turbulent times, but investors are particularly keen on whether the incoming leadership can effectively navigate the challenges the company faces in the competitive spirits market moving forward.