Nestle switches out CEO Schneider during recent challenges
Nestle announced that Schneider, who served as CEO and Board member for eight years, is stepping down from his positions.
Lately, Nestle has faced challenges, lowering its full-year sales forecast for this year due to the need to moderate price increases in response to cost-conscious customers.
Nestle's shares, representing companies like KitKat and Nescafe, have dropped by 8% this year, underperforming competitors such as Unilever, which have seen a 29% increase.
Freixe, a Nestle veteran, joining the company in 1986, and having served on the executive board for 16 years, most recently as CEO of Zone Americas, will take over.
As Bank Vontobel analyst Jean-Philippe Bertschy put it, "A long-term Nestle insider with a deep understanding of both the company and the market is taking the reins."
Effective from September 1st, the transition to Freixe will occur, as per Nestle's statement.
This move to promote an internal candidate is a return to Nestle's traditional approach to CEO appointments.
Schneider, who previously led Fresenius, was the first external hire for Nestle's top position in nearly a century, assuming the role in 2016.
Nestle is currently dealing with lower sales due to the need to moderate price increases, which is impacting its business performance.
Freixe, with his extensive experience at Nestle and deep understanding of the market, is expected to guide the company's business strategies moving forward.
