World: Diageo considers external candidates as CEO, sources say

Diageo, the world's top spirits maker, has considered external candidates to be its chief executive, including outgoing GSK CEO Emma Walmsley, the Financial Times reported on November 7, citing people familiar with the situation.

Diageo and GSK did not immediately respond to Reuters requests for comment.

In September, GSK said Walmsley would step down at the end of the year and be replaced by insider Luke Miels. Walmsley served for more than eight years in the role, making her the most senior female CEO in Britain.

Interim Diageo CEO Nik Jhangiani stepped in after the abrupt exit of former CEO Debra Crew in July, after she struggled to win over investors following a bumpy start to her tenure.

Jhangiani previously said he expected a decision on a permanent replacement by the end of October, but the company did not provide an update when it cut its sales and profit forecasts on Thursday.

Cranley Macfarlane, deputy chief investment officer at Diageo investor Church House Investments, said this raised questions about why Jhangiani had not been made CEO on a permanent basis, as some had expected.

On November 6, Diageo said it expected 2026 sales to be "flat to slightly down" with only low- to mid-single-digit operating profit growth.

Diageo is attempting to cut costs and sell assets as the drinks industry faces cooling post-pandemic demand, tariff-related uncertainty and shifting consumer habits.