Diageo appoints former UK civil service chief as chair

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Diageo has appointed Sir John Manzoni, the former head of the UK civil service, as chair as the drinks giant tries to draw a line under a bruising year that triggered a slump in its share price.

Manzoni, who joined Diageo’s board as a non-executive director in 2020, is chair of energy business SSE and was previously a non-executive director of drinks group SABMiller.

Manzoni will succeed Javier Ferrán when he retires in February 2025 after seven years in the role, the London-listed company said on Tuesday.

A slowdown in sales in Latin America and the Caribbean has hurt Diageo’s share price and increased pressure on its new chief executive, Debra Crew. The region accounts for about a 10th of the group’s sales.

Trevor Stirling, analyst at Bernstein, said Manzoni was “undoubtedly a very experienced beverages non-executive director” but that he believed Diageo “will miss” Ferrán’s in-depth industry knowledge as former chief of Bacardi.

“That said, Diageo’s recent turbulent six months took place when Javier was chairman,” Bernstein added. “Given the long transition period we look forward to Javier playing a major role putting Diageo back on a more even keel before he hands over to Sir John in February next year.”

Shares in Diageo slipped 1 per cent in early trading in London.

Manzoni said: “Diageo has an unrivalled portfolio, a global footprint and world-leading capabilities, and I look forward to supporting the executive team to ensure that we deliver on our potential.”

Diageo’s struggles in Latin America have been one of several challenges confronting Crew. Until recently, the company was also mired in a legal dispute with rapper Sean Combs, known as Diddy, over their joint venture agreement for the premium tequila brand DeLeón.