Nestle has announced a leadership change as CEO Mark Schneider steps down after eight years at the helm. The Swiss food giant revealed on Thursday that Laurent Freixe, a company veteran, will take over as CEO, effective September 1. Schneider’s departure marks the end of an era for the world’s largest packaged food company, which he led through significant challenges and transformations.
Schneider, 58, has also resigned from the board of directors. During his tenure, he restructured the company away from its traditional category-led approach, a move that was particularly significant during the COVID-19 pandemic when demand for Nestle’s products surged. However, more recently, Nestle has struggled, with its sales outlook downgraded last month due to challenges in maintaining price competitiveness amid a more cost-conscious consumer base.
Under Schneider’s leadership, Nestle’s shares reached their peak in January 2022 but have since faced a downward trend, with the company underperforming compared to rivals like Unilever and Danone. The pressure to regain investor confidence and customer loyalty has been mounting, particularly after price hikes following the pandemic and geopolitical tensions.
Laurent Freixe, who joined Nestle in 1986, is expected to steer the company with a focus on its core activities. Freixe has extensive experience within Nestle, having led its European business during the 2008 financial crisis and later overseeing the Americas and Latin America units. His expertise in marketing and sales is seen as a crucial asset as Nestle aims to revitalize its performance.
Analysts have welcomed the leadership change, highlighting Freixe’s deep knowledge of the company and his potential to address underperforming segments such as Nestle’s health science unit and frozen food business in North America. Chairman Paul Bulcke emphasized that the company did not consider external candidates, expressing confidence in Freixe’s ability to lead Nestle through its next phase.
Freixe’s appointment marks a return to Nestle’s tradition of promoting CEOs from within, following Schneider’s unprecedented selection as the first external CEO in nearly a century. As Freixe prepares to take the reins, all eyes will be on how he navigates the challenges ahead and drives growth for the iconic brand.