Nestle announced on Thursday that it is replacing Chief Executive Mark Schneider with long-time executive Laurent Freixe. This marks a significant shift at the world’s largest food maker, which has struggled with the cost-of-living problem affecting customers.
They announced that Schneider, who has led the firm for eight years, has decided to step down as CEO and member of the Board of Directors.
Nestle Replaces CEO Schneider Amid Recent Struggles
he company has struggled recently, lowering its full-year sales forecast last month. It cited the need to moderate price increases as cash-strapped customers become more price-cautious.
Shares of the creator of KitKat chocolate bars and instant coffee have declined 8% in 2024, trailing rivals like Unilever ULVR.L, which has increased 29%.
Freixe joined Nestle in 1986 and has served on the Swiss company’s executive board for 16 years. He most recently served as the CEO of Zone Americas.
“A veteran who understands the brand and the markets is taking over,” said Bank Vontobel analyst Jean-Philippe Bertschy.
Nestle announced that the adjustment would take effect on September 1.
Replacing Chief Executive Mark Schneider
The switch to Freixe marks a return to Nestle’s traditional practice of promoting chief executives from inside the company.
Schneider, the former CEO of the German healthcare business Fresenius, became the first outsider hired for the top position in nearly a century after he took over in 2016.
SOURCE | CNN
