Diageo is reportedly exploring the sale of its Chinese assets as part of an early strategic review under new chief executive Dave Lewis. According to Bloomberg News, the Guinness and Johnnie Walker owner is working with Goldman Sachs and UBS to assess its operations in China, where sales have declined sharply. Diageo holds a majority stake in Sichuan Swellfun, a Shanghai-listed producer and distributor of baijiu, whose shares have fallen significantly over the past year.
Lewis, who began the role in January after leading turnarounds at Tesco and Unilever, is known for aggressive cost-cutting and portfolio simplification. Diageo faces mounting pressures from falling Chinese demand, high debt, changing consumer habits among younger drinkers, and the impact of US tariffs under Donald Trump. The review follows Diageo’s recent agreement to sell its stake in East African Breweries to Asahi Group, signalling a broader retreat from non-core markets. The company has also struggled with supply issues, including a high-profile Guinness shortage in the UK last Christmas, adding to challenges inherited from the previous leadership.
