North America: Diageo appoints North America CEO to jump-start growth in the US

Diageo PLC has unexpectedly replaced its head of North America as the company’s chief executive tries to jump-start growth in the U.S., the Johnnie Walker maker’s largest market, MSN reported on September 21.

The world’s largest global liquor maker has appointed the former head of Clif Bar, Sally Grimes, to the newly created role of North America CEO. Clif was bought by Mondelez last year in a deal worth at least $2.9 billion, and Grimes stepped down from the snack maker in February.

Heading the North America business is one of the highest-profile and most demanding roles at Diageo. New CEO Debra Crew and her predecessor, the late Ivan Menezes, both previously served as presidents of North America.

Grimes will join the executive board and rank above Diageo’s existing North America president, Claudia Schubert, who will stay on as president and chief operating officer but step down from the executive board next month. Schubert—who previously served as Diageo’s U.S. and Canada spirits head—was named to the executive board and her current position heading North America only last year.

Lately, Diageo has lost market share in U.S. spirits. Last month it reported flat annual sales in North America, saying growth of pricey booze had slowed. Another pain point has been fierce competition in canned cocktails, where Diageo has lagged behind. The company’s shares are down 15% in the past year.

Crew, who took up her current role in June, has been trying to accelerate growth in the U.S., and Thursday’s leadership changes are part of that push.

“I’m confident that with these appointments, we are set up to win at pace in North America,” she said.

Grimes will move to New York from her home in Chicago to take up her new position at Diageo. Before Clif, she worked at Tyson Foods running the prepared-foods segment and had also worked at other large consumer-goods companies including Kraft Foods and Newell Brands.

22 September, 2023