Diageo is reportedly considering selling its Chinese assets as part of a strategic shake-up under its new chief executive, Dave Lewis. The owner of Guinness and Johnnie Walker has begun reviewing its China operations with advisers from Goldman Sachs and UBS, amid falling sales in the region. Diageo’s holdings include a majority stake in Shanghai-listed Sichuan Swellfun, a producer and distributor of baijiu, whose share price has declined sharply over the past year.
Lewis, who took over on 1 January, is known for aggressive cost-cutting from his time leading Unilever and later reviving Tesco. His early moves at Diageo come as the group faces multiple pressures, including weaker Chinese demand, high debt, shifting consumer attitudes towards alcohol and the impact of tariffs under Donald Trump. The potential China divestment follows Diageo’s recent agreement to sell its stake in East African Breweries to Asahi Group, signalling a broader effort to simplify the world’s largest spirits maker after a turbulent period under former chief executive Debra Crew.
