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Nestlé Appoints Laurent Freixe as New CEO
Nestlé has announced that Laurent Freixe will take over as CEO on September 1, succeeding Mark Schneider, who has held the top position for nearly eight years. Freixe, currently serving as executive vice president and CEO of Nestlé’s Zone Latin America, joined the company in 1986.
Under Schneider’s leadership, Nestlé underwent significant changes, focusing on high-growth categories like coffee, pet care, and nutritional health products by divesting slower-growing businesses. However, the company has been facing challenges in attracting consumers amid inflation.
Return to Roots with Internal CEO Selection
By choosing Freixe as the new CEO, Nestlé is returning to its tradition of promoting from within. Schneider was the first external hire in almost a century. Freixe’s experience and strategic insights align well with Nestlé’s current needs in a volatile market environment.
Freixe’s tenure at Nestlé has been marked by strengthening the company’s strategic direction and portfolio, focusing on productivity, operational efficiency, and innovation. Nestlé’s chairman, Paul Bulcke, praised Freixe for delivering results in challenging market conditions and positioning the company for future success.
Despite recent challenges in pricing and sales growth, Nestlé remains optimistic about its iconic brands and global presence. Freixe is confident in Nestlé’s ability to lead and succeed in the evolving market landscape.
Transforming the Portfolio
During Schneider’s tenure, Nestlé underwent a transformation by divesting mature businesses and acquiring stakes in high-growth companies like Starbucks, Blue Bottle, and Vital Proteins. The focus on health and wellness products has reshaped Nestlé’s portfolio to align with changing consumer preferences.
As Freixe takes the helm, he will inherit a modernized portfolio but will face challenges in sustaining growth in key segments like pet and coffee products. With consumer spending on the decline, Nestlé will need to innovate, boost productivity, and manage costs effectively to stay competitive.