Diageo has named consumer products veteran Dave Lewis to be its next CEO as the Guinness and Johnnie Walker owner grapples with changing consumer alcohol preferences and considers selling off some of its brands.

A former Tesco boss with a reputation for cost-cutting will take the reins of the drinks giant behind Guinness following months of uncertainty. Sir Dave Lewis will become chief executive of Diageo, which also owns Smirnoff, Johnnie Walker and Captain Morgan’s, from January 1.

Diageo's incoming CEO Dave Lewis, known in financial circles as “Drastic Dave” for his sweeping turnaround of businesses, will put his reputation as a cost-cutter to the test when he joins the world’s largest spirits maker in January with the challenge of lowering its debt and reigniting sales.

Former Tesco boss must lead alcohol group through shift in drinking habits after leadership turmoil and strategy doubts

On a reported basis, Diageo's net sales dropped 2.2% between July and September, as trouble in North America and Asia Pacific endured.

The UK-listed drinks giant suffered a sell-off after a bleak trading update. Its latest woes are likely to see activist investors pile in and call for big changes, City sources told us.