Diageo(US:DEO) Zhi Tong Cai Jing·2025-11-10 09:36Core Viewpoint - Diageo Plc appoints Dave Lewis as the new CEO, aiming to revitalize its core spirits business after a period of turmoil, which has led to a significant drop in sales and profit expectations [1][4] Group 1: Leadership Change - Dave Lewis, known for his turnaround expertise at Tesco, will officially take over as CEO on January 1 [1][2] - Lewis is recognized for his ability to restore profitability and sales during his tenure at Tesco, earning him the nickname "Drastic Dave" [2][3] - The appointment is seen as a positive signal to investors, indicating a commitment to serious restructuring and strategic adjustments [4] Group 2: Market Reaction - Following the announcement, Diageo's stock surged by 7.9%, marking its largest increase in five years, reflecting market optimism about Lewis's leadership [1] - Year-to-date, Diageo's stock has declined approximately 32%, highlighting the challenges faced by the company prior to this leadership change [1] Group 3: Strategic Focus - Analysts suggest that Lewis's role will involve setting achievable growth targets, strengthening core brands, and offering a range of products across different price points [3] - The company has acknowledged the severity of its issues and is committed to a comprehensive overhaul to restore market confidence [4]