Diageo is reportedly considering selling its Chinese assets as part of a strategic overhaul 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 review its China operations, where sales have been declining.
Diageo’s holdings include a controlling stake in Sichuan Swellfun, a Shanghai-listed producer and distributor of baijiu, whose shares have fallen sharply over the past year. Potential buyers are said to include Chinese strategic investors and private equity firms. Lewis, who took over on 1 January, is known for aggressive cost-cutting from his time at Unilever and Tesco.
The move would follow Diageo’s recent sale of its stake in East African Breweries to Asahi Group, as the group looks to reduce debt and refocus its portfolio. Diageo has faced mounting pressure from falling sales in China, shifting consumer habits away from alcohol, supply issues, and the impact of US tariffs.
