Diageo Plc, a global leader in the spirits industry known for iconic brands like premium whisky and stout, announced a significant leadership transition. Chief Executive Officer Debra Crew stepped down after a two-year tenure, and Chief Financial Officer Nik Jhangiani was appointed interim CEO. This change comes at a critical juncture, with the company facing a 20–43% share price decline and weakened demand in key markets. Jhangiani, an Indian-origin executive with over three decades of financial expertise, is tasked with steering the company through a $500 million cost-cutting initiative while a global search for a permanent CEO is underway. This article provides a detailed exploration of Jhangiani’s background, the circumstances of Crew’s exit, his interim role, and the broader implications for the company’s future in the fast-moving consumer goods (FMCG) sector.
Nik Jhangiani: A Profile of Leadership
Nik Jhangiani, also known as Manik Jhangiani, is a 59-year-old Indian-American finance executive born in India in 1966. A graduate of Rutgers Business School with a degree in Economics and Accounting (1988), he holds a certified public accountant (CPA) license in New York, laying the foundation for a distinguished career spanning multiple continents and industries. Jhangiani’s professional journey reflects his ability to navigate complex financial landscapes and drive strategic growth:
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Early Career: Jhangiani began at a leading global accounting firm, where he honed his financial acumen and developed expertise in auditing and compliance.
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Pharmaceutical and Consumer Goods: He held senior finance roles at major multinational corporations, including a stint as Group Financial Director for Nigeria at a prominent consumer goods company, where he managed financial operations in challenging markets.
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Telecommunications: As Group CFO for a major Indian conglomerate, Jhangiani oversaw financial strategy across 21 countries, handling diverse sectors like telecom, retail, and insurance.
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Beverage Industry: He served as CFO and Senior Vice President at a global beverage company, later becoming CFO of a merged entity generating €18 billion in annual revenue. His tenure included managing high-stakes mergers, acquisitions, and capital market transactions.
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Diageo: Joining as CFO in September 2024, Jhangiani was appointed to the Board and Executive Committee, launching a $500 million cost-cutting plan to address financial pressures.
Jhangiani’s reputation for financial discipline, strategic foresight, and clear communication has earned him widespread investor confidence, positioning him as a natural choice for the interim CEO role.
Debra Crew’s Departure
Debra Crew, the company’s first female CEO, assumed leadership in June 2023 following the sudden death of her predecessor. Her tenure was marked by significant challenges that impacted the company’s performance:
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Market Downturn: Demand weakened in key markets, including China, the United States, Mexico, and Brazil, driven by post-pandemic economic shifts and changing consumer preferences.
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Share Price Decline: The company’s stock fell by up to 43% by July 2025, reflecting investor concerns over profitability and market conditions.
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US Tariff Impact: Anticipated tariffs on spirits exports to the US were projected to cost $150 million, adding financial strain.
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Profit Warning: Within five months of her appointment, Crew issued a profit warning, abandoning medium-term sales targets, which further eroded investor trust.
Crew stepped down “by mutual agreement” with the board, which commended her for navigating unprecedented global volatility, including supply chain disruptions and geopolitical tensions. The board, led by Chair John Manzoni, has initiated a global search for a permanent CEO, considering both internal and external candidates to lead the company into its next phase.
Jhangiani’s Interim Leadership
As interim CEO, Jhangiani is spearheading a critical turnaround strategy to stabilize the company’s finances and restore market confidence. His key priorities include:
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Cost-Cutting Initiative: A $500 million savings plan by 2028, targeting efficiencies in supply chain management, advertising budgets, and operational processes. This includes streamlining production and reducing overhead costs.
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Debt Reduction: Addressing the company’s financial leverage, exacerbated by a 20% share price drop over the past year, to strengthen its balance sheet.
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Portfolio Optimization: Reviewing the company’s extensive portfolio of brands to identify underperforming assets for potential divestiture, aiming to focus on high-growth segments.
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Market Stabilization: Rebuilding demand in key markets like the US and China while capitalizing on growth opportunities in emerging markets like India, where a potential UK trade pact could lower prices and boost sales.
Jhangiani’s appointment triggered an immediate positive response, with the company’s share price rising 3.6–4.4% upon the announcement, reflecting investor optimism in his ability to deliver results. Analysts have praised his “cool confidence” and clear communication, with some suggesting he could be a strong contender for the permanent CEO role, given his deep understanding of the company’s financial structure and global operations.
Strategic Context: The FMCG and Spirits Industry
The global spirits industry, part of the broader FMCG sector, is navigating a complex landscape in 2025. Key challenges include:
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Economic Pressures: Inflation and rising input costs, such as raw materials for spirits production, are squeezing margins, similar to trends seen in India’s FMCG sector, where leaders like Marico’s Saugata Gupta face cocoa price hikes.
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Consumer Shifts: Younger consumers are increasingly opting for premium and craft spirits or non-alcoholic beverages, forcing companies to innovate.
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Regulatory Hurdles: In markets like India, proposed advertising restrictions on liquor brands pose challenges to brand visibility and marketing strategies.
Jhangiani’s experience in the beverage sector, particularly his success in managing mergers and driving revenue growth, equips him to address these challenges. His focus on cost efficiency aligns with industry trends, where performance-linked compensation, as seen with top FMCG CEOs in India, incentivizes measurable outcomes.
Economic and Social Implications
Jhangiani’s leadership has significant implications for the company and its stakeholders:
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Economic Impact: The $500 million cost-cutting plan aims to restore financial stability, critical for a company operating in 180 countries and employing thousands. Success in emerging markets like India, where premium spirits consumption is rising, could drive revenue growth, especially if trade agreements reduce tariffs.
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Industry Trends: Jhangiani’s interim role reflects the FMCG sector’s shift toward appointing financially savvy leaders to navigate volatility. His performance-linked compensation mirrors trends in India, where CEOs like Saugata Gupta earn significant stock-based rewards.
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Social Impact: As an Indian-origin executive, Jhangiani’s rise is a source of pride for the Indian diaspora, resonating on social media platforms where users celebrate his global success. However, his leadership faces scrutiny in India due to proposed advertising curbs on liquor firms, which could limit brand promotion in a key growth market.
Challenges Ahead
Jhangiani’s interim tenure is not without obstacles:
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Market Volatility: Ongoing tariffs and declining demand in major markets like the US and China require strategic pivots to maintain profitability.
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CEO Transition: Balancing immediate operational needs with the uncertainty of a permanent CEO search could strain leadership focus.
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Regulatory Environment: Navigating advertising restrictions in markets like India, alongside global compliance demands, adds complexity to marketing strategies.
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Stakeholder Expectations: Investors expect quick results from the cost-cutting plan, while employees and consumers demand sustained brand quality and innovation.
The Path Forward
To succeed as interim CEO, Jhangiani must prioritize:
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Executing Cost Savings: Swiftly implement the $500 million savings plan, focusing on supply chain and operational efficiencies to boost margins.
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Strengthening Key Markets: Leverage growth opportunities in India and other emerging markets, capitalizing on potential trade agreements to enhance competitiveness.
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Transparent Leadership: Maintain open communication with investors, as his clear style has been lauded, to sustain market confidence during the transition.
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Innovation Focus: Invest in premium and non-alcoholic beverage segments to align with evolving consumer preferences, ensuring long-term relevance.
