Nestle CEO Mark Schneider steps down after 8 years
What's the story
Mark Schneider (58), the Chief Executive Officer (CEO) of Nestle, has announced his resignation after nearly eight years at the helm.
His departure comes amid the company's struggle to boost sales and retain consumers for its branded goods due to ongoing inflation.
Schneider will be succeeded by Laurent Freixe, a seasoned executive within the company, who currently holds the position of Executive Vice President and CEO for the Latin America region.
Leadership transition
Freixe to assume CEO role on September 1
Freixe, a 62-year-old veteran of the Swiss multinational company, is set to take over as CEO on September 1, according to Nestle's official statement.
Schneider's decision to step down extends beyond his role as CEO; he will also be leaving his position on the board.
During his tenure, Schneider led significant changes within Nestle, including transitioning away from a category-led structure post-COVID-19 pandemic and establishing five geographically-focused businesses.
Business challenges
Nestle's performance and Schneider's legacy
Despite a robust recovery post-pandemic, Nestle has recently faced difficulties.
The company, known for brands like Nespresso coffee capsules, Purina dog food, and Haagen-Dazs ice cream, revised its sales growth forecast for 2024 downward last month due to slower price increases in H1 2024.
This was a result of customers becoming more price-sensitive amid economic constraints.
Parting words
Schneider reflects on his tenure
Schneider expressed gratitude for his time at Nestle, stating, "Leading Nestle for the past eight years has been an honor for me. I am grateful for what we have achieved, having transformed Nestle into a future-proofed, innovative and sustainable business."
It is important to note that the company's shares have fallen by 8% in 2024, underperforming competitors like Unilever which saw a 29% rise during the same period.
Successor's path
Freixe's journey and future plans at Nestle
Freixe, who joined Nestle in France in 1986, has served the company for over four decades and spent 16 years on its executive board.
He has held various roles including managing Nestle's European business during the 2008 financial crisis, leading the Americas unit, and most recently overseeing the Latin America business since 2022.
Freixe stated that he feels privileged to continue building and strengthening Nestle.
Controversies
Company's recent controversies and future challenges
In recent years, Nestle has faced accusations from Swiss NGO Public Eye for allegedly selling baby food with high sugar content in low-income countries but not in wealthier ones.
The company denied these claims, stating it had "no double standard" and applied the same nutrition and health principles everywhere.
Additionally, France's food safety watchdog urged stricter monitoring of sites where Nestle extracts mineral water following the discovery of traces of "fecal" contamination.