Nestlé Names Laurent Freixe as New CEO Amid Economic Challenges

Nestlé has appointed Laurent Freixe as its new CEO, effective form September 1. Freixe, a seasoned executive with the company since 1986, will replace Mark Schneider, who is stepping down after eight years at the helm. The leadership change comes at a time when the world’s largest food company is grappling with shifting consumer spending habits and inflationary pressures.

During Schneider’s tenure, Nestlé made significant changes to its portfolio, focusing on high-growth categories like coffee, pet care, and nutritional health products while divesting slower-growing businesses, such as its iconic confections and North American bottled water operations. Despite these efforts, the company has struggled to maintain momentum, recently lowering its 2024 organic sales growth forecast to “at least” 3%, down from a previous estimate of around 4%.

Freixe, currently the executive vice president and CEO of Nestlé’s Zone Latin America, has been recognized for his ability to drive strategic growth and improve operational efficiency. Paul Bulcke, Nestlé’s chairman, described Freixe as a “talented leader with strategic acumen and extensive market experience.”

Nestlé has faced challenges in retaining consumer interest amidst rising costs and tighter household budgets. Brands like Lean Cuisine, DiGiorno, and HotPockets have seen declines in sales as cash-strapped customers cut back on spending. Freixe acknowledged the hurdles ahead but expressed confidence in Nestlé’s diverse portfolio and global reach, emphasizing the importance of innovation and agility.

Looking forward, Freixe will aim to reinvigorate Nestlé’s offerings, particularly in the pet care and coffee segments, which have slowed after initial pandemic-driven growth. With consumer spending tightening, there is also a focus on boosting productivity and managing costs to navigate the uncertain economic landscape.

Freixe’s deep understanding of Nestlé’s operations and his proven track record make him a fitting choice to steer the company through these challenging times. His leadership will be pivotal in guiding Nestlé towards sustained growth and maintaining its status as a leader in the global food and beverage industry.