Diageo Weighs Sale of Chinese Assets as New CEO Moves to Streamline Group

Diageo is reportedly considering selling its Chinese assets as part of a broader portfolio shake-up under its new chief executive, Dave Lewis. The Guinness and Johnnie Walker owner has begun reviewing its China operations alongside Goldman Sachs and UBS, amid declining sales in the market, according to reports. Diageo’s holdings include a majority stake in Shanghai-listed Sichuan Swellfun, a baijiu producer whose shares have fallen sharply over the past year. Lewis, who took over on 1 January and is known for aggressive cost-cutting from his time at Tesco and Unilever, is seeking to simplify the world’s largest spirits maker as it grapples with high debt, shifting consumer habits and the impact of US trade tariffs. The potential China exit follows the recent sale of Diageo’s stake in East African Breweries to Asahi Group. The group has also faced supply disruptions, weak demand in Latin America and China, and reputational issues such as the Guinness shortage in UK pubs last winter.