Diageo’s Interim Chief Outlines Plans To Accelerate Growth
August 19, 2025Diageo interim CEO Nik Jhangiani, who assumed leadership of the world’s largest spirits player last month upon the departure of Debra Crew, has been named as a contender to take on the chief executive role on a permanent basis. In a statement late last week he outlined key priorities for the drinks giant as it looks to accelerate growth in the coming months. According to Impact Databank, Diageo had global spirits volume of 230 million 9-liter cases last year, about 80 million cases ahead of both Suntory Global Spirits and Pernod Ricard, which are now neck-and-neck at approximately 148 million cases.
Jhangiani noted that Diageo remains well-positioned with “a number of competitive advantages,” among them the 13 billion-dollar brands in its stable, but “must do more to continue to lead the way in premium drinks and drive growth in an evolving TBA (total beverage alcohol) landscape.”
Citing challenges like an uncertain global economy and heightened trade barriers in key markets like the U.S., Jhangiani said, “Our industry backdrop has remained highly challenging in fiscal 25—arguably tougher than in many previous cycles. Despite the tough consumer landscape, many of our markets and brands have delivered positive performance this year.”
Tequila has been a clear bright spot, with Diageo’s category sales climbing 18% in the year through June. “Diageo is the number-one Tequila player globally and our portfolio gained share in 94% of reported net sales in measured markets, with strong performance particularly from Don Julio Reposado,” Jhangiani noted. Indeed, Don Julio is projected to become the largest-selling spirits brand in the U.S. in retail value terms this year, overtaking Tito’s, according to Impact Databank.
The whisk(e)y category has seen more headwinds, despite 3% growth from Crown Royal over the past 12 months. Diageo claims a nearly 25% value share across the “international whisk(e)y” segment, which it defines as including Scotch, Canadian, U.S., Irish, and Japanese whiskies. “Johnnie Walker, while gaining share of international whisk(e)y and Scotch and recruiting consumers including through the launch of Johnnie Walker Black Ruby, saw an organic net sales decline, largely driven by the United States, Asia Pacific Travel Retail, and Greater China,” said Jhangiani, observing that Scotch is typically among the categories first impacted “when the consumer wallet is under pressure.” Accelerating Johnnie Walker recruitment through both premiumization and innovation is a priority looking ahead, he added.
Guinness is another area of opportunity, with the brand rising by double-digits globally and propelling a 5% increase for Diageo Beer Co. USA in the year through June. In calendar 2024, Guinness rose 5% to 12.4 million (2.25-gallon) cases in the U.S., according to Impact Databank. The brand “continues to make strides in the United States, which we believe is a major long-term opportunity,” Jhangiani asserted. “Guinness has also recruited a significant number of new consumers in new occasions.”
Guinness has been among the brands driving growth for Diageo in its non-alcohol business with Guinness 0, which earned Impact “Hot Brand” honors by rising 51% to 700,000 cases in the U.S. last year. Diageo also bolstered its non-alcohol portfolio with the acquisition of the Ritual non-alc spirits label over the past year. “We view moderation as one of our greatest opportunities,” said Jhangiani. “The inherent versatility of spirits makes moderation more accessible and appealing, and we are leaders in the fast-growing non-alcoholic spirits category.”
As Diageo aims to ramp up growth, it’s also embarking on a wide-ranging Accelerate program intended to boost efficiency across its global footprint. “We now expect to deliver c.$625 million cost savings over the next three years. This includes savings from A&P efficiencies, overheads, supply chain efficiencies, and trade investment,” Jhangiani said.—Daniel Marsteller
| Diageo—Top Ten Brands in the U.S. | ||||||
| Rank | Brand1 | Origin/Type | Total 2024 U.S. Volume2 |
Control States’ Volume Growth 2025 YTD3 |
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|---|---|---|---|---|---|---|
| 1 | Smirnoff | Vodka | 7.95 | -4.1% | ||
| 2 | Crown Royal | Canadian Whisky | 7.25 | -6.4% | ||
| 3 | Captain Morgan | Rum | 4.40 | -6.4% | ||
| 4 | Don Julio | Tequila | 3.35 | 34.5% | ||
| 5 | Ketel One | Vodka | 2.50 | 5.8% | ||
| 6 | Casamigos | Tequila | 1.95 | -16.4% | ||
| 7 | Johnnie Walker | Scotch Whisky | 1.80 | -3.1% | ||
| 8 | Bulleit | Bourbon/Rye | 1.65 | -2.6% | ||
| 9 | Baileys | Liqueur | .140 | -6.1% | ||
| 10 | Tanqueray | Gin | 1.30 | -4.3% | ||
| Total Top Ten | 33.55 | -2.7% | ||||
| 1 Includes flavors; excludes RTDs. 2 Millions of 9-liter case depletions. 3 Year-to-date June. Source: NABCA and IMPACT DATABANK © 2025 |
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Tagged : Casamigos, Crown Royal, Diageo, Don Julio, Guinness, Johnnie Walker
