Nestlé has announced a leadership change, with CEO Mark Schneider stepping down and company veteran Laurent Freixe taking over the reins. The Swiss food giant revealed the transition on Thursday, highlighting a shift in leadership amid challenges in driving sales growth.
Schneider, who has led Nestlé for eight years, will step down as CEO and board member. His tenure was marked by significant restructuring, moving the company away from its traditional category-led structure, especially during the COVID-19 pandemic, when Nestlé experienced a surge in demand as consumers stocked up on food and drinks during lockdowns. However, recent struggles have emerged, with Nestlé cutting its full-year sales outlook last month and slowing price hikes due to increased price sensitivity among customers.
Under Schneider’s leadership, Nestlé’s shares peaked in January 2022 but have since declined, especially from May 2023 onward. The company has faced challenges in regaining consumer loyalty, particularly in comparison to rivals like Unilever and Danone, who have managed to lower product prices and boost sales volumes more effectively.
Freixe, whose appointment will be effective from September 1, brings over three decades of experience with Nestlé. He joined the company in France in 1986 and has held various leadership roles, including heading Nestlé’s European business during the 2008 financial crisis and leading the Americas and Latin America units, where he oversaw significant growth.
In his first statements as incoming CEO, Freixe emphasized a renewed focus on Nestlé’s core activities, while not excluding potential mergers and acquisitions. He is recognized for his deep knowledge of the company and his marketing and sales expertise. Analysts describe Freixe as a “safe pair of hands,” with expectations that he may address underperforming areas, such as Nestlé’s health science and frozen food units.
Nestlé Chairman Paul Bulcke expressed confidence in Freixe, noting that there was no need to consider external candidates for the role.
