Diageo is reportedly considering selling its Chinese assets as part of a broader overhaul under its new chief executive, Dave Lewis. The owner of Guinness and Johnnie Walker has begun reviewing its operations in China, where sales have been weakening, and is said to be working with Goldman Sachs and UBS to assess options. Diageo’s holdings include a majority stake in Shanghai-listed Sichuan Swellfun, a producer and distributor of baijiu, whose shares have fallen sharply over the past year.
Lewis, who took over on 1 January after leading turnarounds at Unilever and Tesco, is known for aggressive cost-cutting and portfolio simplification. Diageo is under pressure from falling demand in China, shifting consumer attitudes to alcohol, high debt levels and the impact of US tariffs. The review follows the recent sale of Diageo’s stake in East African Breweries to Asahi Group, signalling a push to focus on core, higher-performing brands. The group has faced recent operational challenges, including supply issues in Latin America and a Guinness shortage in the UK, underscoring the scale of the task facing its new leadership.
