Diageo is reportedly considering the sale of its Chinese assets as part of a strategic review under its new chief executive, Dave Lewis. According to Bloomberg News, the owner of Guinness and Johnnie Walker is working with Goldman Sachs and UBS to assess its operations in China, where sales have declined sharply.
Diageo’s Chinese holdings include a majority stake in Sichuan Swellfun, a Shanghai-listed producer and distributor of baijiu. Shares in Swellfun have fallen 14% over the past year, leaving the company valued at about 19.2bn yuan. The banks are said to be sounding out interest from Chinese strategic buyers and private equity groups.
Lewis, who took over on 1 January, earned the nickname “Drastic Dave” during his long tenure at Unilever and later led a major turnaround at Tesco. At Diageo, he faces pressures including falling Chinese sales, high debt, shifting consumer habits and the impact of tariffs under Donald Trump. The group has already begun trimming its portfolio, recently agreeing to sell its stake in East African Breweries to Asahi Group.
