Nestlé is replacing Chief Executive Mark Schneider with long-serving executive Laurent Freixe, marking a significant leadership change at the world’s largest food company as it grapples with the impact of the cost of living crisis on its customers.
After eight years at the helm, Schneider has decided to step down from his roles as CEO and member of the Board of Directors, Nestlé announced on Thursday.
The company has faced challenges recently, including a reduction in its full-year sales outlook last month, attributed to the need to slow price increases as financially constrained consumers become more price-sensitive.
Shares of the company, known for products like KitKat chocolate bars and Nescafé instant coffee, have declined by 8% in 2024, lagging behind competitors such as Unilever, which has seen a 29% increase in its stock price.
Laurent Freixe, who will assume the role of CEO, joined Nestlé in 1986 and has served on the Swiss company’s executive board for 16 years. His most recent position was CEO of Zone Americas.
“A veteran who knows Nestlé inside and out, as well as the markets, is taking over,” said Jean-Philippe Bertschy, an analyst at Bank Vontobel.
The leadership change will take effect on September 1, according to Nestlé. Freixe’s appointment marks a return to Nestlé’s tradition of promoting chief executives from within the company.
Schneider, the former head of the German healthcare company Fresenius, was Nestlé’s first external hire for the top position in nearly a century when he assumed the role in 2016.
