Board Member Resigns Amid Executive Turnover at Diageo’s Chinese Baijiu Unit

Diageo’s Chinese Baijiu subsidiary Shui Jing Fang has announced the resignation of board director Sathish Krishnan, marking the latest in a series of senior leadership changes at the company.

In a statement released this week, the Sichuan-based baijiu producer said it had received a written resignation from Krishnan, who cited work-related reasons for stepping down. He will no longer hold any position at the company. Prior to his departure, Krishnan served as a member of the board, the strategy committee, the audit committee, and the remuneration and assessment committee. His term was originally scheduled to end on June 4, 2027.

Krishnan, an Indian national, holds an MBA from the Indian Institute of Management Bangalore. He previously held senior roles at Procter & Gamble and was Diageo’s finance director for Asia-Pacific before joining the board of Sichuan Shui Jing Fang Co., Ltd.

The departure adds to a growing list of leadership shake-ups at the baijiu maker, which is majority-owned by London-based drinks giant Diageo. Since Diageo took control of the firm in 2010, Shui Jing Fang has changed general managers seven times, appointing a mix of Chinese and foreign executives, including Kenneth M. Acpherson, James Michael Rice, and Fan Xiangfu.

In June, rumours surfaced online of widespread layoffs at Shui Jing Fang, including the reported dissolution of the high-end brand team “Di Yi Fang.” Although the information was quickly scrubbed from Chinese social media platforms, the company did not issue a public response. Speculation also circulated about a potential sale of Shui Jing Fang by Diageo, which the company later denied.

Profits Halved in First Half of 2025

Shui Jing Fang expects a steep drop in earnings for the first half of 2025. In a preliminary earnings report, the company projected net profit attributable to shareholders of RMB 105.41 million, down 56.5% year-on-year. Operating revenue is expected to fall 12.8% to RMB 1.5 billion (USD 208.8 million).

The company blamed the weak performance on continued pressure across China’s baijiu industry, which it said is undergoing a “deep structural adjustment.” Traditional consumption scenarios, including business banquets and celebratory feasts, remained under strain in the second quarter. Consumer demand during the Lunar New Year period fell short of expectations, and excess inventory in distribution channels further dampened sales.

Parent Company Faces Broader Challenges

Shui Jing Fang’s struggles come amid broader headwinds for its parent company. Diageo reported a 1.4% year-on-year drop in global sales and a 5% fall in operating profit for the first half of its fiscal year 2025 (July–December 2024). Although net sales rebounded by 5.9% in the third quarter (January–March 2025), the Asia-Pacific region remained weak. Sales in Greater China and Southeast Asia continued to decline.

Krishnan’s resignation also follows the departure of Diageo CEO and board director Debra Crew, who stepped down just two weeks earlier. The company’s global slowdown occurred under her leadership. There is no indication at this time that Krishnan’s resignation is connected to the leadership changes at Diageo’s headquarters.