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Diageo has appointed Sir John Manzoni, the former head of the UK civil service, as head of the drinks giant as it tries to draw a line under a painful year that led to a decline in its share price.
Manzoni, who joined Diageo's board as a non-executive director in 2020, is chairman of energy company SSE and was previously a non-executive director of beverage group SABMiller.
The London-listed company said on Tuesday that Manzoni will succeed Javier Ferran when he retires in February 2025 after seven years in the role.
Slowing sales in Latin America and the Caribbean have hurt Diageo's share price and increased pressure on its new CEO, Debra Crowe. The region accounts for about a tenth of the group's sales.
Bernstein analyst Trevor Sterling said Manzoni was “undoubtedly a non-executive director with significant beverage experience”, but believed Diageo would “miss” Ferran's in-depth knowledge of the industry as the former boss of Bacardi.
“However, the last six turbulent months for Diageo occurred while Javier was president of the company,” Bernstein added. “Given the long transition period, we look forward to Javier playing a key role in bringing Diageo back to normal before he hands over to Sir John in February next year.”
Diageo shares fell 1 percent in early trading in London.
“Diageo has an unparalleled portfolio, global footprint and world-leading capabilities, and I look forward to supporting the executive team to ensure we realize our potential,” Manzoni said.
Diageo's struggles in Latin America were one of many challenges facing Crowe. Until recently, the company was also mired in a legal dispute with rapper Sean Combs, known as Diddy, over a joint venture agreement for luxury tequila brand DeLeón.
