Diageo is reportedly considering selling its Chinese assets as part of a major portfolio review under new chief executive Dave Lewis. The owner of Guinness and Johnnie Walker is said to be working with Goldman Sachs and UBS to assess operations in China, where sales have declined sharply.
Diageo’s Chinese interests include a controlling stake in Sichuan Swellfun, a Shanghai-listed producer and distributor of baijiu. According to reports, the banks have begun sounding out potential Chinese buyers and private equity firms, with Swellfun’s shares down 14% over the past year. The possible divestment follows Diageo’s recent sale of its stake in East African Breweries and reflects Lewis’s reputation for aggressive restructuring, earned during his time at Unilever and Tesco.
The London-based group faces multiple pressures, including falling demand among younger consumers, high debt, the impact of US tariffs under Donald Trump, and a double-digit sales decline in China flagged last year. Lewis succeeded Debra Crew at the start of January, inheriting a business that has also struggled with supply issues, including a high-profile Guinness shortage in the UK. The review signals a renewed effort to simplify Diageo’s global footprint and refocus on more profitable markets.
