Nestlé, the world’s largest food company, is facing one of the toughest periods in its history, marked by plunging share prices, leadership turmoil, and scandal. On Wednesday, newly appointed Chief Executive Officer Philipp Navratil addressed staff at a global virtual meeting, pledging to revive performance but offering few details. The meeting, dubbed “All Hands,” ended nearly 30 minutes early — a symbolic reflection of the company’s urgency to act.
Nestlé’s stock has fallen approximately 45% since peaking in 2022, pressured by declining volumes, rising costs, volatile consumer demand, and what many investors perceive as suboptimal strategic decisions. The company’s reputation for stability has been shaken further by the dismissal of former CEO Laurent Freixe over an undisclosed relationship with a subordinate and criticism of former Chairman Paul Bulcke’s handling of the affair.
In a surprise move this week, Bulcke announced his early retirement. He will be succeeded by Pablo Isla, former Inditex chief, who, alongside Navratil, is expected to spearhead a turnaround. Investors are demanding quick, bold action. “Now the path is open — perhaps even for a revolutionary approach, not just an evolutionary one,” said Ingo Speich, head of sustainability and corporate governance at Deka Investment.
Nestlé’s governance is under scrutiny after three CEO changes in as many years — Mark Schneider in 2023, Freixe in 2024, and now Navratil. Sales growth has slumped to historic lows, with underperforming units, such as bottled water and vitamins, weighing on the results. Mounting debt from acquisitions, share buybacks, and dividends has only added to concerns.
The company has also faced reputational setbacks — from a CHF 1.9 billion write down on its peanut allergy treatment business in 2023 to fines in France over Perrier’s illegal water treatments. Meanwhile, global Nespresso sales risk being hit by steep US tariffs, adding to financial strain.
Navratil, a Nestlé veteran of more than two decades, brings deep company knowledge, while Isla, an outsider with retail expertise, is expected to inject a fresh perspective. But both face intense scrutiny given Isla’s board role during Freixe’s troubled tenure.
Investor patience is running thin. “Important strategic decisions now need to be made as quickly as possible,” Flossbach von Storch, a Nestlé investor, said in a statement. Calls for a strategic review, debt reduction, and sharper focus on profitable categories are growing louder.
For now, employees have been told to prepare for “speed over perfection” and “courage over comfort” — mantras from Nestlé’s new “future ways of working.” Whether Navratil and Isla can restore investor confidence and revive growth remains the pressing question.