Nestlé’s newly appointed CEO, Laurent Freixe, has initiated significant organisational changes as the company adjusts its sales forecasts due to weaker-than-expected performance.
In his initial major move since taking the helm at Nestlé last month, Laurent Freixe has unveiled a strategic reorganisation of the company’s global operations. The fast-moving consumer goods (FMCG) giant, renowned for brands such as Nescafé, Purina, and Kit Kat, reported just a 2% increase in underlying sales during the first nine months of the year. Consequently, the company has revised its full-year growth forecast to 2%, a reduction from the previous minimum expectation of 3%, which had already been downgraded from an earlier 4% projection.
The reorganisation aims to streamline Nestlé’s executive operations and increase efficiency. Key changes include the consolidation of the Latin America and North America zones, and the integration of the Greater China Region into the Asia, Oceania, and Africa zone. These modifications are intended to enhance decision-making speed, improve simplicity, and reinforce global initiatives, as Freixe emphasises. “All the leaders of key units driving our performance and our transformation will now report directly to me,” Freixe asserted, highlighting the drive towards a more consolidated leadership structure.
Freixe also underlined the company’s commitment to consumer focus and brand investment as critical elements in strengthening market share and accelerating performance. He articulated the organisation’s future direction towards a digital transformation, aspiring to become a data- and AI-powered entity that operates in real-time. Speaking to the Financial Times, Freixe remarked, “Nestlé is not broken, Nestlé is up and running. And we will make sure that all this potential is realised going forward.”
These changes follow the departure of former CEO Mark Schneider, who had served at Nestlé for eight years. In July, the company had previously adjusted its guidance for the year 2024, citing a faster than expected easing of prices, which influenced its lower sales outlook. These developments indicate a pivotal moment for Nestlé as it seeks to realign its strategies to address current market challenges.
The reorganisation and revised sales guidance reflect Nestlé’s proactive approach under Laurent Freixe’s leadership, aiming to strengthen its market position and operational efficiency in a rapidly evolving business landscape.
