Drinks firm Diageo chief executive Dave Lewis is overhauling the company's supply chain and pricing to halt recent sales declines across global markets.
The company has positioned itself as a luxury goods business with core brands such as Johnnie Walker and Guinness alongside Casamigos Tequilas and Talisker. Columnist Alex Brummer said Lewis plans to focus on competitive pricing while dealing with changing consumer tastes and cost-of-living pressure in Britain, the United States, and worldwide.
Brummer noted that drinking culture remains active, pointing to popular cocktails, craft beer, spirits, and strong alcohol sales during the World Cup. He added that Diageo's premium products must manage shifting consumer fashions in the same manner as luxury brands LVMH and Burberry.
Diageo previously experienced supply chain difficulties under former chief executive Debra Crew, when overstocking in Latin America caused operational disruption. Investors reacted positively to an accelerated savings target of $1billion announced by the company.
Lewis previously led Tesco, where he sold its Pacific operations to tackle legacy debt and pension issues while rebuilding supply chains and vendor relationships. Diageo management expects strong North American distribution and cost savings to help stabilize sales performance.
Management changes at Google DeepMind
Alphabet has restructured executive leadership at its artificial intelligence division Google DeepMind following competition from OpenAI and Anthropic.
Demis Hassabis is stepping aside as chief executive to become chief scientific officer and chairman of Google DeepMind. Alphabet chief executive Sundar Pichai said the change will allow Hassabis to focus on developing artificial general intelligence to equal human computing capability.
Reports indicate Hassabis was overly focused on scientific research and awards rather than generating revenue. Veteran engineer Jeff Dean, creator of Google's Gemini model, is leaving the organization.
Google concentrates its artificial intelligence operations at its King's Cross campus in London, while ultimate corporate control remains at Alphabet headquarters in Mountain View, California. Brummer noted that the changes highlight the vulnerability of British technology firms to overseas parent companies, comparing the situation to Cambridge-founded Arm Holdings following its valuation move to New York. Alphabet holds a market valuation of $4.4trillion.
Share price jump at advertising firm WPP
Advertising company WPP recorded a 25 per cent increase in its share price, marking its largest single-day gain since 1992.
Chief executive Cindy Rose presented plans to restructure the business around artificial intelligence tools and tech partnerships. Former chief executive Martin Sorrell had previously built the agency group through extensive corporate acquisitions.
The business recently secured new client contracts with Estee Lauder, Tesco in Britain, and American restaurant chain Wendy's. Rose faces continuing market pressure from private equity firms while marketing spend declines across most commercial sectors, excluding healthcare and pharmaceuticals.
