The transfer of power was swift. As swift as tasting a Nespresso coffee. Officially, Sunday 1Ahem In September, Frenchman Laurent Freixe took control of Swiss agribusiness giant Nestlé, owner of the famous coffee brand, just ten days after the surprise departure of his predecessor, German Ulf Mark Schneider, was announced.
As a sign of the speed of this eviction, the “informal talk” organised jointly with Barclays on 30 August, during which the CEO of the Vevey group was to speak, was hastily cancelled.
Mr Freixe was ready to take over. His name had already been circulating in the summer of 2016, when Nestlé was looking for a successor to Paul Bulcke, who was keen to leave his position as CEO to become chairman of the board of directors. Only then a candidate from outside the group was preferred.
Eight years later, his in-depth knowledge of the multinational, acquired over a thirty-eight-year career during which he rose through the ranks to become head of the Latin American region, is, on the contrary, considered a major asset.
he will have to “mobilize” the 270,000 employees of the world’s number one agri-food company,” “Align them behind specific actions with discipline and in the right direction, as part of a strategy focused on nutrition, health and well-being”, “Bulke insisted, listing the challenges that Freixe will have to face, during a speech to analysts, the day after the decision to change the captain of the Swiss liner.
In the face of the wave of inflation
The chairman of the board therefore seems to expect greater efficiency in the execution of this choice, rather than a review of the strategy, and is confident that the new CEO, who has been on the executive committee for sixteen years, will revitalize Nestlé.
This call to mobilise the troops has a clear and reiterated objective: the agri-food giant must return to marked organic growth. The same course of action was imposed on Mr Schneider in 2016. The group then wanted to return to the Nestlé model of annual growth of its activity of 5% to 6%, accompanied by an increase in margins.
During his tenure, the German boss has thoroughly restructured the Vevey Group’s portfolio, selling off the American confectionery, life insurance subsidiary, dermatological care business and bottled water in the United States, while making acquisitions in the food supplements, vitamins and coffee sectors, as well as forming an alliance with Starbucks.
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