Diageo Chair John Manzoni is seeking to appoint new directors to the company's board who possess specific experience in the drinks and distribution sectors, according to a report by the Financial Times on Tuesday. Citing three sources familiar with the matter, the report indicated that Manzoni intended to increase industry-specific knowledge among the board's non-executive directors.
The proposed board changes come as CEO Dave Lewis leads a restructuring of the spirits group. According to the report, Manzoni aims to recruit directors capable of evaluating Lewis’s strategy as the company addresses declining sales in North America. In May, Lewis identified the North American market as the company's primary challenge and announced measures such as price reductions on specific brands.
A spokesperson for Diageo stated that while the current board possesses relevant consumer experience and has the chair's support, Manzoni is looking to optimize the mix of backgrounds and skills on the board. The company stated this effort is intended to improve shareholder returns. Lewis joined Diageo following a career marked by cost-cutting initiatives at Tesco and Unilever.