Nestle CEO Mark Schneider steps down after 8 years

What is the story?

Mark Schneider (58), chief executive officer (CEO) of Nestle, announced his resignation after almost eight years in office.

His departure comes at a time when the company is struggling to increase sales and retain customers interested in its branded products due to ongoing inflation.

Schneider will be replaced by Laurent Freixe, a seasoned executive at the company who currently serves as executive vice president and general manager of the Latin America region.

Freixe will take over as CEO on September 1

According to an official statement from Nestle, Freixe, a 62-year-old veteran of the Swiss multinational, is set to take over as CEO on September 1.

Schneider’s decision to resign goes beyond his role as CEO; he will also resign from his position on the board.

During his tenure, Schneider led significant changes at Nestle, including moving away from a category-based structure in the wake of the COVID-19 pandemic and creating five geographic-focused businesses.

Nestle’s Results and Schneider’s Legacy

Despite a solid economic recovery from the pandemic, Nestle has struggled recently.

The company, known for brands such as Nespresso coffee capsules, Purina dog food and Haagen-Dazs ice cream, last month revised down its sales growth forecast for 2024 due to slower price growth in the first half of 2024.

This was the result of customers becoming more price-sensitive in the face of economic constraints.

Schneider sums up his term

Schneider expressed his gratitude for his time at Nestle, stating, “It has been an honor to lead Nestle for the past eight years. I am grateful for what we have accomplished in transforming Nestle into a forward-thinking, innovative and sustainable company.”

It should be noted that the company’s shares are down 8% in 2024, which is worse than competitors like Unilever, whose shares are up 29% in the same period.

Freixe’s journey and future plans at Nestle

Freixe, who joined Nestle in France in 1986, has worked for the company for more than four decades and spent 16 years on its board.

He has held various positions, including managing Nestle’s European business during the 2008 financial crisis, heading the Americas unit and most recently, from 2022, overseeing the Latin American business.

Freixe said he feels honored to continue building and strengthening Nestle.

Recent Controversies in the Company and Future Challenges

In recent years, Nestle has been accused by Swiss NGO Public Eye of allegedly selling high-sugar baby food in low-income countries but not in wealthier ones.

The company has denied these claims, saying it “does not apply double standards” and applies the same nutrition and health principles everywhere.

In addition, France’s food safety watchdog has called for more rigorous monitoring of sites where Nestle extracts mineral water after discovering traces of “faecal” contamination.