Diageo’s new chief executive, Sir Dave Lewis, is betting on canned cocktails to help reignite the company’s growth.

According to reports, the former Tesco boss outlined plans this week to expand into the rapidly growing ready-to-drink (RTD) category during a staff meeting. The move represents a notable shift for Diageo, which has traditionally been cautious about building a major presence in RTDs due to concerns over lower profit margins. Its current offerings in the category are largely extensions of existing brands, including Smirnoff Ice, Casamigos Margaritas and Gordon’s G&T.

In 2021, Diageo made its first significant push into the segment by acquiring RTD brands Loyal 9 Cocktails and Lone River Ranch Water, a hard seltzer. Industry data from IWSR shows RTDs are currently the only spirits segment experiencing consistent growth.

Analysts say Lewis now faces a key decision: whether to grow Diageo’s RTD business through further acquisitions or by expanding its existing brands. Since taking over in January, he has already begun reshaping the company—overhauling the executive team, cutting the dividend and committing to reinvest in core mass-market labels such as Captain Morgan and Smirnoff.

His early actions suggest a playbook similar to the one he used at Tesco, where he focused on boosting sales volumes through price cuts—earning the nickname “Drastic Dave.” While Diageo has spent more than a decade premiumising its portfolio, Lewis signalled in February that some “price repositioning” may now be on the table.