Key Points:
- Nestlé is making changes to its organizational structure and executive board due to slow sales growth. Changes include reducing the executive board size, merging Latin America and North America units, and combining Greater China with Asia, Oceania, and Africa.
- New CEO Laurent Freixe aims for a leaner structure to enhance decision-making speed and global initiatives momentum.
- Nestlé lowered its full-year sales guidance to 2%, citing sluggish consumer demand, marking the lowest growth rate in decades.
Insight:
Cash-strapped consumers are impacting the food and beverage industry, with Nestlé facing challenges. Freixe plans to offer discounts and lower prices to attract shoppers, especially in the U.S.
North America saw organic growth decline, with intense competition in frozen foods. Nestlé gained market share in pet food and coffee but faced losses in frozen pizza and coffee creamers.
Freixe’s swift restructuring aims to improve decision-making and streamline operations to tackle global challenges effectively.
Nestlé is focusing on its core portfolio and launching products to align with consumer trends. The company is also reviewing its portfolio for potential divestments.