Diageo Plc is undergoing a wave of senior-level exits as Chief Executive Officer Dave Lewis intensifies an overhaul of the spirits company in response to underperformance in key markets. Employees were informed at meetings this week that Ed Pilkington, the company's North America chief marketing and innovation officer, Hina Nagarajan, president for Africa, and Chief Human Resources Officer Louise Prashad are departing.
The departures come after Diageo reported a 9.4% decline in organic net sales in North America in the third quarter, tied to weaker demand in that region. Lewis has publicly acknowledged that Diageo missed considerable opportunities in the U.S. market in recent years, citing the ready-to-drink cocktails segment as an area where the company fell short.
As part of the current restructuring, Diageo is combining its Africa and Europe divisions into a single unit. The reorganization is being carried out while Lewis, described as a turnaround specialist, proceeds with a broader review of the business. Lewis assumed the CEO role in January after the exit of former chief executive Debra Crew, which followed a period of declining performance at the company.
Lewis is scheduled to present his full plan for revamping Diageo on Aug. 6. Company officials characterized the recent executive departures as part of the rapid pace at which the new CEO is reshaping the organization.
The changes announced this week underscore the directional shift at Diageo under Lewis's leadership. Management-level turnover, the consolidation of regional units and a pending strategy reveal all form components of the current corporate transition.
While details of replacements for the departing executives were not provided in the meetings reported to staff, the timetable for a full strategic presentation - set for early August - indicates the company intends to lay out its next steps and priorities in the near term.
Contextual notes: The personnel changes were communicated to employees at internal meetings this week. The company reported a third-quarter North America organic net sales decline of 9.4%. Lewis has highlighted missed U.S. opportunities in recent years, particularly in the ready-to-drink cocktails category. The Africa and Europe divisions are being merged, and Lewis will present a comprehensive turnaround strategy on Aug. 6.