Nestlé CEO Mark Schneider will be replaced by company mainstay Laurent Freixe, the current CEO of Nestlé Zone Latin America, effective 1 September.
Freixe is a company veteran and popular with many in the multinational's Geneva HQ. He aims to focus on core categories in the company.
Who is Nestlé's new boss?
Freixe’s appointment as CEO comes after a long career at Nestlé. He been with Nestlé for 38 years, having joined the company in 1986. He has had various roles including CEO of Nestlé Zone Europe between 2008 and 2014. He previously contended for the CEO post in 2016, but was unsuccessful, according David Hayes, analyst at investment bank Jeffries.
He has also spent 16 years as a member of Nestlé’s executive board, and has played a key role in the company’s strategic direction.
In conclusion, then, unlike Schneider, who was recruited from healthcare company Fresenius, Freixe is a Nestlé veteran with decades of experience in the company he looks to lead.
Freixe is a popular figure in the company’s headquarters, Reuters News Agency reports, and analysts have highlighted his experience in sales and marketing - he joined the company in 1986 as the field of marketing and sales - as key strengths. One pointed out that other successful companies, such as Danone and Lindt, have CEOs with marketing backgrounds.
“I am privileged to have been given the opportunity to continue building and strengthening Nestlé, and I am excited to take on this responsibility. There will always be challenges, but we have unparalleled strengths, such as 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,” said Freixe.
“Leading Nestlé for the past 8 years has been an honour for me. I am grateful for what we have achieved, having transformed Nestlé into a future-proofed, innovative and sustainable business. I would like to thank the entire Nestlé community for what we have accomplished together and wish Laurent all the best in his new role,” said Schnieder.
What does Freixe want to do?
Freixe has suggested that under him, the company would focus on its ‘core activities’. “The big message is focus on the core," he said.
In an investors call earlier today, Freixe laid out his plans for the company. He wants to keep supporting the company's key growth brands, he suggested, singling out Nescafe.
He aims to accelerate organic growth. While M&A may be used to complement this, it 'is not the core of the strategy,' he told the investors' call. Organic growth in the company was 2.1% in its recent half-year results, while in the previous year’s it was 8.7%.
"I don't see any contradiction", he said, between aiming for market share and supporting the margins. "If you look at the equation, market share drives the top line, the top line drives the margins."
