Leadership Shake-up at Nestle: Freixe Steps In

Nestle is replacing CEO Mark Schneider with company veteran Laurent Freixe as it confronts challenges to boost sales. Schneider steps down after eight years, paving the way for Freixe, who will focus on core activities, to take over from Sept. 1. The change marks a return to promoting internally.

Nestle is making a significant leadership change, replacing CEO Mark Schneider with longtime company veteran Laurent Freixe, as announced on Thursday. This shift comes as the Swiss food giant grapples with the challenge of boosting its sales.

Schneider, who has led the company for eight years, is stepping down both as CEO and a member of the board. During his tenure, he moved Nestle away from its traditional category-led structure, a strategy shift necessitated by the boom in home consumption during the COVID-19 pandemic.

However, more recently, Nestle has faced difficulties, including a downward revision of its full-year sales outlook and the need to slow price hikes amid customers' growing price sensitivity. Schneider's exit follows a period of underperformance compared to rivals like Unilever. Analysts highlight Freixe's deep understanding of Nestle's operations and his robust sales and marketing expertise as key assets for his new role starting Sept. 1.

(With inputs from agencies.)