Diageo runs in London after rumours of radical changes in management

(Il Sole 24 Ore Radiocor) - Diageo is excelling on the London Stock Exchange in the wake of an article in the Financial Times according to which the new CEO of British drinks giant Diageo, Dave Lewis, intends to make radical changes in top management. The British newspaper, citing unnamed sources, reports that Lewis 'is planning a major transformation of his executive team' in a bid to 'eradicate the 'fat and happy' culture of the struggling drinks giant'.

Lewis is intent on replacing several of the 14 members of his team, the Ft. points out. Investors are hoping that Lewis will bring Diageo out of "three years of malaise characterised by anaemic sales growth, profit warnings and boardroom 'drama'". Lewis, who has earned the nickname 'Drastic Dave' for his reputation in cost-cutting, intends to "dissolve entire layers of management" at Diageo, according to one of the sources. The CEO is not expected to announce the changes at next week's quarterly results, but investors expect him to act soon to turn the company around quickly, the Ft.