July 21 (Reuters) – Diageo’s (DGE.L), chair John Manzoni is planning a shake-up of its board and is searching for new board directors with commercial experience in the drinks or drinks distribution sectors, the Financial Times reported on Tuesday, citing three people familiar with the matter.
Manzoni “isn’t happy with the board he inherited,” the FT reported, citing one of the people.
He is also keen to hire non-executive directors who will be able to challenge the Johnnie Walker maker’s new CEO, Dave Lewis, as he tries to overhaul the business, according to the newspaper.
Manzoni is keen to appoint directors whose influence and experience in the drinks sector can act as a counterweight to Lewis, FT said.
The report added that Manzoni was concerned that the present board did not have enough industry knowledge “to steer him or stop him from going too far”.
Reuters could not verify the report. Diageo did not immediately respond to a Reuters’ request for comment.
Lewis, nicknamed “Drastic Dave” for his aggressive cost cuts at Tesco (TSCO.L), and Unilever (ULVR.L), has set in motion a restructuring of the struggling spirits group, FT had earlier reported.
Lewis said in May that the company would start tackling weak sales in North America, its largest market, which he called its “biggest challenge”, with steps including price cuts on some tequila brands such as Casamigos.
Reporting by Chandni Shah in Bengaluru; Editing by Nivedita Bhattacharjee and Sonia Cheema.
