By Joshua Kirby

Diageo has appointed John O'Keeffe as new leader for its key North America business after the previous regional chief executive officer stepped down.

O'Keeffe will take over as CEO and president of Diageo North America, moving from a previous role leading the drinks giant's Asia-Pacific, India and travel businesses.

"[O'Keeffe's] blend of consumer, brand-building and category capabilities uniquely positions him to lead North America over the next few years," a spokesperson for Diageo said Wednesday.

O'Keeffe replaces former CEO Sally Grimes, who has stepped down. In a post on LinkedIn, Grimes said she would be dedicating her time to a foundation dedicated to her late son.

Grimes joined Diageo in 2023 from California snack-bar maker Clif Bar, where she was CEO.

O'Keeffe constitutes a "strong and reassuring successor" to Grimes, analysts at Barclays wrote in a note following the news.

"Given his long tenure and breadth of experience, we believe O'Keeffe is well-regarded by the investor community and is seen as a steady and credible operator," Barclays said.

The change in leadership comes as Diageo, maker of Guinness stout, Johnnie Walker whisky and Smirnoff vodka, struggles to reposition itself following a period of lackluster sales and a falling share price. New group CEO Dave Lewis, who took the reins at the beginning of the year, told investors in February that the North America market is challenged.

"Our portfolio needs some time and investment to make it more competitive," Lewis said. The company said it was slashing its shareholder dividend as it looks to plough funds into a turnaround plan aimed at arresting a slide in sales volumes, a trend that has also weighed on Diageo's peers in the booze industry.

The company has in recent months inked deals to offload some assets, including its Kenyan business and a cricket team in India. But it could also broaden some parts of its portfolio, Lewis said. Analysts have suggested some U.S. mid-market brands might suit the group's shift in strategy.

The company is also hoping for a boost to North America sales this year from the soccer world championship due to be played in the U.S., Canada and Mexico over the summer.

Write to Joshua Kirby at joshua.kirby@wsj.com; @joshualeokirby

(END) Dow Jones Newswires

April 01, 2026 08:11 ET (12:11 GMT)

Copyright (c) 2026 Dow Jones & Company, Inc.