In a surprise announcement, global food giant Nestlé has named 38-year company veteran Laurent Freixe as CEO, effective September 1, replacing outgoing Mark Schneider.
The move reportedly came the day after a board meeting at which Schneider was asked to step down.
“[This] is another sign that this is not a planned transition,” Bruno Monteyne, managing director and senior analyst with research firm Bernstein, told Reuters. “It is clearly not his choice either, or he probably would have managed a smoother transition.”
During his eight-year tenure, Schneider pivoted the company toward high-growth products such as coffee, pet care, and nutritional health products, while exiting slower-growth sectors. He also committed to halving the company’s carbon emissions by 2030 and reaching net-zero emissions by 2050.
Weak sales growth has dogged the company, however. In its half-year results released in July, Nestlé noted a real internal growth rate of 2.2% for the second quarter and just 0.1% for the entire first half on underlying trading operating profit of 7.8 billion Swiss francs (approximately $9.2 billion). As a result, the company downshifted its organic sales growth outlook for the year from 4% to 3%.
The board decided that changes needed to be made and turned internally for new leadership.
Freixe had served as executive vice president and CEO Zone Latin America since 2022, when Nestlé adopted an updated geographic zone structure; prior to that, he was CEO of Zone Americas for eight years. He has been a member of the executive board since 2008. “I have known Laurent for a long time and highly regard him as a talented leader with strategic acumen, extensive in-market experience and expertise, as well as a deep understanding of markets and consumers,” says Paul Bulcke, Nestlé chair and Schneider’s immediate predecessor. “He has demonstrated his ability to deliver results in challenging market conditions. Laurent’s curiosity fuels his passion for innovation and positive change. Laurent is the perfect fit for Nestlé at this time.”