Diageo boss Sir Ivan Menezes to stand down in June
Diageo boss Sir Ivan Menezes to step down in June after ten years in charge of the owner of the FTSE 100 Guinness
- Sir Ivan Menezes’ successor is Diageo chief operating officer Debra Crew
- Diageo owns Captain Morgan rum, Smirnoff vodka, Bailey’s Gin and Guinness
- The London-based group now sells more than 200 brands in at least 180 markets
Sir Ivan Menezes will retire from Diageo in the summer after ten years of leading the beverage giant.
Indian-born Menezes initially joined the company when it was formed in 1997 from a merger of Guinness and Grand Metropolitan, rising through the ranks to eventually become its CEO 16 years later.
He succeeded another Diageo boss, Paul Walsh, who grew the Johnnie Walker owner’s market capitalization to £50bn while focusing on key drinks brands and expanding sales to emerging markets.
Quits: Indian-born Sir Ivan Menezes (pictured) initially joined Diageo when it was formed in 1997 from a merger of Guinness and Grand Metropolitan
Since Walsh’s departure, the company’s value has grown by a further £30bn thanks to multiple acquisitions, mainly of premium brands, and growth in emerging economies such as Greater China and India.
The London-based group now sells more than 200 brands in at least 180 countries, ranging from Captain Morgan rum to Smirnoff vodka and Guinness, the UK’s best-selling beer in pubs.
It is also the world’s largest seller of Scotch and Canadian whisky, tequila, vodka, gin, rum and liqueurs, accounting for around 10 per cent, or £2 billion, of the UK’s annual food and drink exports.
Menezes, who was knighted on King Charles’ first New Year’s Honors list, said it was “a tremendous honor” to lead Diageo for the past 10 years and was “extremely proud of what we have achieved in that time.”
Diageo Shares has risen 88 percent during his tenure, while shareholder returns significantly outperformed the broader FTSE 100 index.
Menezes will step down from the company’s board of directors on June 30 and will be succeeded by current chief operating officer Debra Crew, who will become Diageo’s first female CEO.
“In theory, an internal appointment reduces the likelihood of a radical shift in strategy,” said Russ Mould, investment director at AJ Bell.
“The market reaction…shows that investors are not concerned about major changes in the company. Instead, this seems as smooth a transition as an athlete passing the baton in a sprint relay.”
Crew, a former United States Army officer, previously served as the president of cigarette company Reynolds American during its full takeover by British American Tobacco.
Before that, she spent periods working for Kraft Foods, Mars Incorporated, ice cream company Dreyer’s – owned by Nestlé – and PepsiCo, where she headed the Western European office.
Her appointment as boss of Diageo means that women will represent more than 50 percent of the company’s board.
Last month, the company was named the top ranked for female board representation in the FTSE Women Leaders Review for the third consecutive year.
Crew told investors, “I am focused on continuing Diageo’s extraordinary track record of building world-leading brands and enhancing our reputation as one of the most responsible companies in what I believe is the most exciting consumer product category.”
In its latest half-year results, Diageo revealed net sales were up 18.4 per cent to £9.4 billion, beating analysts’ forecasts, thanks to stronger demand for premium spirits and price increases and productivity savings offsetting cost inflation.
Diageo shares were 0.8 percent lower on Tuesday morning at 3,554.5 pence.