Diageo is parting ways with several top executives as part of an extensive overhaul of the struggling UK distiller led by new chief executive Dave Lewis.
Ed Pilkington, the North America chief marketing and innovation officer, Hina Nagarajan, Africa president, and chief human resources officer Louise Prashad are among those who will leave the business, employees were told at meetings this week, according to people with knowledge of the matter.
The high-profile departures are the latest sign of how quickly Lewis — a turnaround specialist dubbed “Drastic Dave” for his willingness to execute sweeping changes — is moving to revamp the maker of Guinness stout and Johnnie Walker whisky.
Pilkington’s departure comes after Diageo reported a 9.4 per cent slump in organic net sales in the vital North America market during the third quarter on lackluster demand. Lewis has previously said that Diageo missed significant opportunities in the US in recent years, particularly in the ready-to-drink cocktails segment.
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Diageo will also combine its Africa and Europe divisions into one unit, said one person who was at the meeting and did not wish to be named.
Diageo declined to comment.
Since taking charge in January, Lewis has been moving fast to fix a business that for years was considered one of the best-run drinks companies in the world before a decline in performance led to the departure of former chief executive Debra Crew.
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Lewis will lay out his full strategy for revamping Diageo on August 6th, the company previously said.
Shares of Diageo are down about 30 per cent in the past 12 months, amid investor concerns about the impact of macroeconomic issues such as US tariffs, and self-inflicted errors like poor service levels and a skewed focus on mostly catering to the premium end of the market.
Last month, Lewis told employees he planned to simplify regional management teams and cut jobs across the company; he said he wanted to give greater decision-making power to managing directors for their markets. He did not reveal how many of Diageo’s more than 29,000 roles worldwide were at risk.
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Like its rivals, Diageo is also facing slowing demand for alcohol in some markets, as consumers grow more health- and cost-conscious. The company has suffered from capacity constraints that even affected Guinness, its biggest brand. – Bloomberg
