Diageo appoints Debra Crew as interim chief executive
Diageo appoints Debra Crew as interim boss after Sir Ivan Menezes develops complications following surgery
- Sir Ivan Menezes joined Diageo in 1997 when it was created through a merger
- Diageo’s market capitalization has increased by approximately £25 billion during Menezes’ tenure
- Crew first joined Diageo three years ago as North American president
Debra Crew has been provisionally appointed as boss of beverage giant Diageo, while Sir Ivan Menezes is being treated in hospital.
Menezes, 63, was due to retire at the end of June, after a decade of managing owner Captain Morgan and Johnnie Walker, which he joined when it was founded in 1997 through a merger of Guinness and Grand Metropolitan.
But over the weekend, he experienced a “significant setback” after experiencing complications following emergency surgery for an ulcer, Diageo said.
Promotion: Debra Crew (pictured) has now been appointed CEO of beverage giant Diageo while Sir Ivan Menezes is treated in hospital
He will remain on the company’s board until he retires on June 30, but Crew has now been named interim CEO effective immediately.
“Our thoughts are with our beloved colleague, Ivan, and his family,” the company added. “Out of respect for the privacy of Ivan and his family, we will not be commenting further at this time.”
Menezes acquired Diageo in 2013, succeeding Paul Walsh, who transformed the company into a global leader through expansion into emerging markets and a series of acquisitions.
The Indian-born executive builds on that strategy, acquiring premium brands such as tequila seller Casamigos co-founded by actor George Clooney, rum maker Don Papa and Ryan Reynolds-backed Aviation Gin.
Diageo now sells more than 200 brands in at least 180 countries and is the world’s largest seller of Scotch and Canadian whisky.
During Menezes’ tenure, the company’s market capitalization has grown by around £25 billion, despite the impact of the Covid-19 pandemic on the hospitality industry.
Crew’s appointment makes her the tenth female CEO of a FTSE 100 company, joining Amanda Blanc at Aviva, Dame Emma Walmsley at GSK, Liv Garfield at Severn Trent and Jennie Daly at Taylor Wimpey, among others.
After a stint as an officer in the US Army, she worked for food giants Kraft Foods, Nestlé and Mars, and spent five years at PepsiCo before leading tobacco group Reynolds American to its acquisition by British American Tobacco.
She joined Diageo three years ago as president of its North American division and became the company’s chief operating officer last October, a position she held for just eight months.
Her promotion to the top position means that women will represent more than half of the company’s board.
Russ Mold, director of investment at AJ Bell, said: ‘Spirits are a decent business to work in because they are cheap to make and usually have strong brand loyalty.
However, Crew must demonstrate that it can make a good return on some of the pricey purchases of premium spirits Diageo has made in recent years.
“Under Menezes, the company has focused on profitability, cash flow and growth in emerging markets, and tapping into the growing middle class in developing countries makes sense. However, recent times have shown that this also exposes Diageo to volatility.”
Diageo Shares were flat Monday morning, just 3 pence, or 0.01 percent lower at 3,369.5 p.