New Diageo CEO slashes dividend and signals price cuts
Financial Times
February 25, 2026
AI-Generated Deep Dive Summary
New Diageo CEO Dave Lewis has announced significant changes to revive the struggling Guinness maker, including slashing dividends and signaling potential price cuts. These moves aim to address declining profits and restore demand for the company’s premium spirits, which have been impacted by inflation and shifting consumer behaviors. Lewis’ strategy reflects a broader effort to stabilize the business and adapt to economic challenges.
The decision to reduce shareholder payouts marks a shift in priorities under Lewis’ leadership. By cutting dividends, he is redirecting funds toward initiatives that could boost sales volume, particularly in Europe, where Diageo has faced significant headwinds. The CEO’s announcement also hints at broader price reductions across the company’s product range, which may help make its premium beverages more accessible to consumers during economic uncertainty.
This strategic pivot comes as Diageo grapples with declining sales of high-end spirits and a broader slowdown in demand for luxury goods amid rising costs and inflation. Lewis
Verticals
businessfinance
Originally published on Financial Times on 2/25/2026