SWITZERLAND – Nestlé, the world’s largest food maker, has appointed Laurent Freixe as its new CEO, effective September 1, 2024.

Freixe, a 40-year veteran at Nestlé, will replace Mark Schneider, who has decided to explore new opportunities outside the company.

In an early call with analysts, Freixe outlined his priorities, emphasizing the need to “raise our game” and drive sustainable top-line growth through market share gains.

He stressed the importance of “engaging with people and mobilising the entire organisation top to bottom” to energize the front line and invest in the business.

Freixe’s appointment comes after Nestlé recently trimmed its forecast for organic growth in 2024 from “around” 4% to “at least” 3% and cut its EPS guidance from growth of 6-10% year on year to a mid-single-digit range.

The company’s shares opened down on the news of the CEO change, although they have since regained some ground.

Nestlé’s outgoing chairman, Paul Bulcke, praised Schneider’s contributions over the past eight years, stating that he “has done an excellent job.”

However, Bulcke also acknowledged that the company needs to focus more on “in-market execution and marketing” to fuel its brands and meet changing consumer preferences.

Freixe emphasized that Nestlé will make “increased investments behind innovation” to relentlessly focus on meeting consumers’ and customers’ needs.

He stressed the importance of productivity and cost efficiency to generate the resources needed for these investments, stating, “I want to create the space; I want to generate efficiency and resources to invest in the business.”

The company’s capital markets day in November will be closely watched for further details on Freixe’s plans for Nestlé as it embarks on a new chapter under his leadership.

 Analysts will see if Nestlé can return to its previous growth trajectory of 4-6% in the coming year.

Nestlé’s appointment of Laurent Freixe as its new CEO signals a renewed focus on driving sustainable growth through market share gains and increased investment in innovation.

With Freixe’s extensive experience and the company’s strong foundations, Nestlé is well-positioned to navigate the challenges and opportunities ahead in the global food market.

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