Diageo chief executive Sir Dave Lewis has placed canned cocktails at the heart of his turnaround plan. Addressing staff on Tuesday, the former Tesco boss said the group will push hard into the fast‑growing ready‑to‑drink (RTD) segment, a market the spirits maker has long avoided for fear of eroding margins. The move targets a category that now outpaces all other spirit lines.

Diageo’s RTD portfolio leans on extensions such as Smirnoff Ice, Casamigos Margaritas and Gordon’s G&T, plus the 2021 acquisitions Loyal 9 Cocktails and Lone River Ranch Water. Industry data shows RTD sales in the United States jumped 29 percent in the last four weeks, while tequila and bourbon volumes fell 4 percent and 3.6 percent respectively. In the first half of the year, Diageo’s RTD revenues rose 17% organically.

Analysts see Lewis facing a choice between buying emerging brands or deepening extensions of existing labels. Jefferies’ Ed Mundy warns against a pricey acquisition spree, while Bernstein’s Trevor Stirling notes that only some RTD concepts enjoy lasting demand. Lewis has already cut the dividend, reshuffled the C‑suite and signalled possible price repositioning for mass‑market names such as Captain Morgan and Smirnoff.