Is Diageo selling its Chinese assets?

Reports indicate that Diageo is considering selling its Chinese assets as part of a portfolio streamlining effort under its new CEO.

Who is the new CEO of Diageo?

The new CEO of Diageo is Dave Lewis, who took over the role on January 1, 2026.

What other brands does Diageo own?

Diageo owns well-known brands such as Guinness, Johnnie Walker, Smirnoff, Captain Morgan, and Don Julio.

Home / Business and Economy / Diageo Eyes China Sale Amidst Portfolio Shake-Up

Diageo Eyes China Sale Amidst Portfolio Shake-Up

13 Jan

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Summary

Diageo is reportedly considering selling its Chinese assets.
New CEO Dave Lewis aims to streamline the company's portfolio.
The company is working with banks to assess interest from buyers.

Diageo Eyes China Sale Amidst Portfolio Shake-Up

Diageo, the world's largest spirits producer, is reportedly considering a significant divestment of its Chinese operations. This potential sale is part of a broader strategy by new CEO Dave Lewis, who took the helm on January 1, 2026, to streamline the company's extensive global portfolio. Lewis, known for his cost-cutting initiatives, is initiating a review of assets in China, a market that has seen declining sales.

The company has enlisted the expertise of Goldman Sachs and UBS to explore the market and identify potential buyers. Interest is being sounded out from both Chinese strategic investors and private equity firms. Diageo's holdings in China include a substantial stake in the Shanghai-listed Sichuan Swellfun, which distributes the popular Baijiu spirit.

This reported move in China follows Diageo's recent sale of its 65% stake in East African Breweries to Japan's Asahi Group for $2.3 billion (£1.7 billion) last month. The company is navigating challenges including high debt levels and evolving consumer preferences, particularly among younger demographics with reduced alcohol consumption.