Dive Brief:
- Diageo has announced the CFO of its North American division Greg Kryder is stepping down next month.
- Kryder has served in his role since 2012 and will be leaving "to pursue other career interests."
- Kryder will be replaced by Jakob Ripshtein, the current head of Diageo Canada, who will work in both roles concurrently.
Dive Insight:
Diageo has been struggling to keep pace with competitors in North America, the company's largest market, and recently decided to restructure and revamp its marketing efforts in the region. Deirdre Mahlan, head of Diageo's North American business, said at an investor conference last month that the company needed these changes "because it came to rely 'perhaps too heavily' on its U.S. distribution network and hadn't paid enough attention to consumer trends," The Wall Street Journal reported.
In July, Diageo reported a 3% decline in volume in North America. In September, the company announced that the company's overall profit is likely taking a £150 million (approximately $229 million) hit, which was worse than the company originally thought.
Diageo is responding to consumer trends in North America, particularly innovation in spirits and premium brands, including earlier this year acquiring the remaining 50% stake in premium tequila brand Don Julio, which has seen growth in North America along with other Diageo premium brands like Buellit and Ciroc, according to the July report.
In October, Diageo sold its U.S. and U.K. wine assets to Treasury Wine Estates Ltd. for $552 million so the company could focus in on its spirits business.