Diageo is reportedly considering selling its Chinese assets as part of a strategic review under its new chief executive, Dave Lewis. The owner of major brands including Guinness and Johnnie Walker is said to be working with Goldman Sachs and UBS to assess options in China, where sales have been declining.
According to reports, Diageo could divest its majority stake in Shanghai-listed Sichuan Swellfun, a baijiu producer and distributor in which it owns more than 63%. Shares in the Chengdu-based company have fallen sharply over the past year, reflecting weaker demand. Lewis, who took over on 1 January and built a reputation for aggressive cost-cutting during his time at Unilever and later at Tesco, is expected to streamline Diageo’s global portfolio.
The move would follow Diageo’s recent agreement to sell its stake in East African Breweries to Asahi Group, exiting its last direct African beer operation. The company is grappling with high debt, pressure from US tariffs, and changing consumer habits, particularly among younger drinkers. Diageo warned in November of a double-digit sales decline in China, underlining the challenges facing the spirits giant as it reshapes its business under new leadership.
