Diageo is reportedly considering selling its Chinese assets as part of a portfolio review under its new chief executive, Dave Lewis. According to Bloomberg, the Guinness and Johnnie Walker owner is working with Goldman Sachs and UBS to assess operations in China, where sales have been declining. The review includes Diageo’s majority stake in Shanghai-listed Sichuan Swellfun, a producer and distributor of baijiu, whose shares have fallen sharply over the past year.
Lewis, who took over on 1 January after reviving Tesco and earning a reputation for aggressive cost-cutting at Unilever, is expected to simplify Diageo’s global footprint. The company faces pressure from weaker Chinese demand, shifting consumer attitudes toward alcohol, high debt levels and the impact of US tariffs. Diageo has already begun reshaping its portfolio, agreeing last month to sell its stake in East African Breweries to Asahi Group. The potential China exit would mark another significant step as the world’s largest spirits maker adapts to a tougher global market.
