24 Aug New CEO for Nestlé
With no prior hints of a succession at the top of the world’s largest food company. Nestlé has named company veteran Laurent Freixe as its new CEO, effective September 1, 2024 …
Freixe, currently the company’s head of Latin America, will replace Mark Schneider, who is resigning after eight years in the role. The change comes as the the food giant, and the industry as a whole, struggles with cash-strapped customers cutting back on spending.
Freixe joined Nestlé in France in 1986. “Since then, he has continuously progressed within the company, assuming various positions of increasing responsibility across different businesses, markets and zones,” the news release said.
“He successfully managed Zone Europe during the financial and economic crisis, from 2008 until 2014. He then took over as CEO of Zone Americas, where he accelerated growth. Following the creation of Nestlé’s new zone structure in 2022, Laurent Freixe was named CEO Zone Latin America, where he has been successfully leading through challenging conditions.”
Freixe has been a member of the company’s executive board for 16 years. “As such, [he] has played an important role in strengthening the strategic direction of the company and its portfolio. With his profound understanding of Nestlé’s culture and values, he has led several global corporate initiatives to improve productivity, increase operational efficiency, simplify processes and drive innovation.”
the announcement did compliment Schneider. “Over his eight years with the company, he has actively shaped the company’s portfolio, in line with Nestlé’s strategy and with a focus on high-growth categories like coffee, pet care and nutritional health products.”
Chairman Paul Bulcke added, “I would also like to express our gratitude to Mark for his significant contributions to Nestlé and for his outstanding, steady leadership in turbulent times. Mark has been instrumental in the great progress we have made on our sustainability agenda. We extend our best wishes to him in all his professional and personal endeavors.”
Bulcke also said of Freixe: “I have known Laurent for a long time and highly regard him as a talented leader with strategic acumen, extensive in-market experience and expertise as well as a deep understanding of markets and consumers.
“He has demonstrated his ability to deliver results in challenging market conditions. Laurent’s curiosity fuels his passion for innovation and positive change. Laurent is the perfect fit for Nestlé at this time. Under his leadership, Nestlé will further strengthen its position as a dependable, reliable company through consistent and sustainable value creation.”
FoodDive.com insights
In picking Freixe, Nestlé is returning to its roots in selecting a CEO from within the company. Schneider was hired by Nestlé from the healthcare company Fresenius Group where he also was CEO — first external hire in almost a century, according to Reuters.
Freixe, however, is no stranger to Nestlé when it comes to its strategy and efforts to position its portfolio to better respond to what people eat and drink and where they consume it. His experience and insight should allow him to easily transition to the top role at a time when Nestlé and other food companies can ill-afford to miss a beat due to inflation, global turmoil and changing consumer habits.
The Essentia and Nescafé parent said last month that pricing for its products had fallen faster than initially predicted due in part to increased promotional activity to encourage consumers to buy more. Nestlé lowered its organic sales growth forecast in 2024 to “at least” 3% compared to a prior estimate of around 4%.
Freixe said that while there will “always be challenges,” Nestlé has “iconic brands and products, an unmatched global presence, leading innovation and execution capabilities and above all, exceptional people and teams. We can strategically position Nestlé to lead and win everywhere we operate.”
Schneider’s tenure at Nestlé was highlighted early on by pressure from activist Third Point, which prompted the CPG giant to accelerate its push into faster-growing areas while jettisoning more mature operations.
It divested its iconic confections segment, including brands like Crunch, Baby Ruth and Butterfinger, its ice cream businesses and the majority of its North American bottled water operation.
In its place, it inked a $7.15-billion deal with Starbucks to sell the chain’s packaged coffee in grocery stores and other outlets around the world. It also purchased a majority stake in the popular coffee shop chain Blue Bottle and premium water Essentia.
Nestlé doubled down on health and wellness through a slew of deals by taking majority stakes in Vital Proteins and Orgain, a maker of protein powders, shakes and bars, and purchasing hydration brand Nuun and nutritional supplement provider The Bountiful Co.
While Freixe will inherit a more modernised portfolio, he will have plenty to keep him busy.
Many of Nestlé’s offerings, including pet and coffee, surged during the pandemic as people spent more time at home. Growth recently has slowed in these segments and there will be pressure to improve the businesses, especially with consumer spending down.
Similar to other executives at the helm in the food industry, Freixe will face challenges in innovating, growing market share and keeping Nestlé’s brands relevant. And with sales slowing, more attention will likely be placed on boosting productivity and managing costs internally.
Source: FoodProcessing,com, FoodDive.com