Nestle announced the replacement of Chief Executive Officer Mark Schneider with long-serving executive Laurent Freixe. This change comes as Nestle, the world’s largest foodmaker, has been struggling with the impact of the cost of living crisis on its customers. Schneider has decided to step down from his role as CEO and member of the Board of Directors after leading the company for eight years. Nestle has faced challenges recently, including cutting its full-year sales outlook due to the need to slow price hikes as customers become more price conscious. The company’s shares have fallen 8% in 2024, lagging behind competitors like Unilever.
Freixe, who has been with Nestle since 1986 and served on the executive board for 16 years, will be taking over as CEO. In his previous role, he was CEO of Zone Americas. Analysts view Freixe as a veteran who knows Nestle and its markets well, making him a suitable choice for the position. The change in leadership will be effective from September 1, marking a return to Nestle’s tradition of promoting chief executives from within the company. Schneider, who came from German healthcare company Fresenius, was Nestle’s first external hire for the top job in nearly a century when he took on the role in 2016.
The shift in leadership at Nestle comes amid ongoing challenges for the company, including the impact of the cost of living crisis on its customers. Nestle has had to adjust its sales outlook and pricing strategies in response to changing consumer behavior. The appointment of Freixe, a long-serving executive with deep knowledge of the company and its markets, is seen as a strategic move to navigate these challenges. The company’s performance in the market, with shares falling while competitors have seen gains, underscores the need for a change in leadership.
Freixe’s appointment as CEO of Nestle signals a return to a more traditional leadership structure for the company, with an internal candidate taking on the top role. This move reflects Nestle’s commitment to grooming and promoting talent from within its ranks. While Schneider brought external experience to the role when he was hired in 2016, the decision to appoint Freixe as his successor indicates a shift back to a leadership model based on internal expertise and familiarity with the company’s operations. The transition is expected to take place smoothly, with Freixe assuming the role on September 1.
Overall, Nestle’s decision to replace CEO Mark Schneider with Laurent Freixe is a significant change for the company as it faces challenges related to the cost of living crisis and shifting consumer behavior. Freixe’s long tenure at Nestle and his experience in various leadership roles within the company make him a suitable choice for the top job. The move represents a return to Nestle’s tradition of promoting talent from within, a strategy that has served the company well in the past. With Freixe set to take over as CEO on September 1, Nestle is positioning itself for continued growth and success in a challenging market environment.
