Guinness maker Diageo, hit by tariffs, says CEO departs

_________________

London, United Kingdom | AFP

Diageo, the maker of Guinness stout and Smirnoff vodka, announced Wednesday that its chief executive, Debra Crew, had stepped down with immediate effect.

While no reason was given for Crew's departure after two years as CEO, the company had been experiencing a tough trading environment ahead of announcing in May that it faced a financial hit from US President Donald Trump's tariffs onslaught.

Diageo, whose brands include Johnnie Walker whisky, Baileys liqueur and Astral tequila, said chief financial officer Nik Jhangiani was taking over as CEO on an interim basis.

"Diageo today announces that Debra Crew has stepped down as chief executive officer and as a board director with immediate effect, by mutual agreement," a statement said.

"The board has begun a comprehensive formal search process, which will include consideration of internal and external candidates."

Diageo chair John Manzoni thanked the 54-year-old US national for "steering the company through the challenging aftermath of the global pandemic and the ensuing geopolitical and macroeconomic volatility".

The company in May said it would cut costs to reduce debt, as the maker of Captain Morgan rum anticipated a hit from US tariffs of $150 million.

Diageo had said it planned savings of $500 million over three years under the first phase of its Accelerate programme.

Crew had been expected to share further details of her cost-cutting plans in Diageo's full-year results due August 5.

Diageo on Wednesday said that its guidance for its upcoming 2025-26 financial year remained unchanged.

Its 2023-24 results revealed a 13-percent drop in net profits on soured demand in Latin America and the Caribbean for its alcohol.

Crew, who was Diageo's first woman CEO, had replaced long-serving chief executive Ivan Menezes after he died following surgery on a stomach ulcer.