Diageo CEO Debra Crew has stepped down after two tough years on the job, as the spirits giant struggles with slowing sales and tariff uncertainty.
The owner of the Don Julio Tequila and Guinness beer brands said in a statement Wednesday that the decision for Crew’s immediate departure as CEO and as a board director was by mutual agreement. The board has begun a search for a successor that will include internal and external candidates. Chief Finance Officer Nik Jhangiani will assume the role of CEO on an interim basis.
Crew was thrust into leadership of the group in June 2023, after serving as a non-executive director for Diageo since 2019. She had been in line to succeed former CEO Sir Ivan Menezes once he retired that year, but was appointed slightly sooner than expected after Menezes died in June 2023.
“On behalf of Diageo and the board, I would like to thank Debra for her contributions to Diageo, including steering the company through the challenging aftermath of the global pandemic and the ensuing geopolitical and macroeconomic volatility,” said John Manzoni, Diageo board chair.
Crew’s tenure has been marked by pressure from investors after post-pandemic dips and a surprising slump in Latin American sales in FY 2023. The company unveiled a plan in May to cut $500 million in costs, free up $3 billion in cash flow for FY 2026, and make substantial asset disposals by 2028, as it looks to turn around its performance and reduce debt. Like other major spirits groups, Diageo has begun offloading underperforming brands, such as Pampero rum and Safari liqueur.
In May, the company estimated that U.S. tariffs, which are back on the negotiating table, could impact its business by around $150 million annually. Sales for the first quarter of the year came in at $4.4 billion, up 2.9% in reported terms. The company will report its full-year 2025 preliminary financial results on August 5.