Diageo CEO Debra Crew steps down amid financial pressures and leadership shakeup

Diageo, the global beverage company known for brands such as Johnnie Walker, Guinness, and Smirnoff, announced that Debra Crew has stepped down as chief executive officer and board member with immediate effect. The company released a statement confirming her departure was by mutual agreement but did not provide further details about the reasons behind this sudden change in leadership.

The announcement comes at a challenging time for Diageo. The company has been facing significant pressure from U.S. tariffs on imported spirits, which have impacted its financial results. In May, Diageo estimated that tariffs imposed by former President Donald Trump would cost the company $150 million, assuming that imports of Mexican and Canadian spirits into the United States remained exempt. If those exemptions were lifted, the financial impact could be even greater. Diageo highlighted earlier this year that its tequila products must be produced in Mexico to meet geographic origin requirements, making them particularly vulnerable to any changes in trade policy.

Nik Jhangiani, Diageo’s chief financial officer, will serve as interim CEO while the company searches for a permanent replacement. Debra Crew, 54, had taken over as CEO in June 2023 following the departure of Ivan Menezes, who left due to health reasons and passed away shortly after at age 63.

Diageo’s latest financial results reflect ongoing difficulties. For its fiscal year 2023-2024, the company reported a net profit of $3.9 billion, down 13% from the previous year. The decline was attributed to weaker performance in South America, North America, and the Caribbean. Last year, Diageo noted that Brazilian consumers were shifting toward beer and away from more expensive spirits. The downward trend continued into the first half of the current fiscal year, with net profit falling another 12% to $1.9 billion for the six months ending December 31.

In response to these challenges, Diageo announced a $500 million cost-cutting program in May. The company is scheduled to release its annual results on August 5.

Despite Wednesday’s news of Crew’s departure, Diageo shares rose 1.3% on the London Stock Exchange shortly after 1 p.m. GMT. However, the stock has lost about a quarter of its value since the start of the year as investors react to ongoing uncertainty in key markets and leadership changes at the top of one of the world’s largest spirits producers.