Diageo is reportedly considering selling its Chinese assets as part of a major strategic review under new chief executive Dave Lewis. The owner of Guinness and Johnnie Walker is said to be working with Goldman Sachs and UBS to assess its operations in China, where sales have been declining sharply. According to reports, the review includes Diageo’s 63% stake in Sichuan Swellfun, a Shanghai-listed producer and distributor of baijiu, whose shares have fallen significantly over the past year.
Lewis, who took over in January and previously led turnarounds at Tesco and Unilever, is known for aggressive cost-cutting and portfolio simplification. Diageo is under pressure from falling Chinese demand, shifting consumer attitudes toward alcohol, high debt levels and the impact of US trade tariffs under Donald Trump. The potential China sale follows Diageo’s recent agreement to sell its stake in East African Breweries to Asahi Group, signalling a broader retreat from underperforming regions. The company has yet to confirm any divestment, but analysts see the move as part of a wider effort to refocus the world’s largest spirits maker on stronger markets and premium brands.
