Debra Crew has stepped down as Chief Executive Officer and board member of Diageo, effective immediately, following mounting internal tensions and declining investor confidence. The decision, officially described as “mutual,” came shortly after Crew informed board chair John Manzoni that her position had become untenable due to persistent speculation about her leadership and the rising influence of Chief Financial Officer Nik Jhangiani, now interim CEO.
Appointed CEO in June 2023 after the sudden death of her predecessor Sir Ivan Menezes (inside.beer, 07.06.2023, inside.beer), Crew’s tenure was marked by challenges, including a sharp 43% drop in Diageo's share price and a slump in spirits demand, especially in Latin America. Her leadership suffered from critical missteps such as a poorly received capital markets day in New York and appointments of key executives lacking beverage industry experience.
Crew, a former US military intelligence officer and ex-CEO of Reynolds American, had joined Diageo as a non-executive director in 2019, later becoming President of Diageo North America and Group COO. Despite her track record, insiders described her communication as aloof and reactive. Reports indicate she sought board support to quell rumors about Jhangiani’s ambitions, but the board unanimously opted for leadership change instead.
Jhangiani, a seasoned executive from the Coca-Cola system, quickly gained investor trust with his decisive communication style and strategic outlook. He is now a frontrunner among several candidates for the permanent CEO role, alongside names like Damian Gammell (Coca-Cola European Partners), Jacob Aarup-Andersen (Carlsberg), and former AB InBev CEO Carlos Brito.
While Diageo maintains its financial guidance for 2025 and 2026, and prepares to report full-year results on August 5, challenges remain. The group faces sluggish global spirits demand, a heavy debt load, and possible annual tariff impacts of up to USD 150 million. Analysts anticipate that Jhangiani will move forward with previously announced cost-cutting and potential asset sales to strengthen Diageo’s balance sheet.
Crew, who canceled her return to London after the news broke, said: “It has been a privilege to lead Diageo through this turbulent period. I wish the very best to the many outstanding people who I have had the pleasure to work with.”
The board, led by Manzoni, is conducting a global search for Crew’s permanent successor, evaluating both internal and external candidates with the goal of securing long-term sustainable growth.
