Nestle announced on Thursday its chief executive, Mark Schneider, is leaving the Swiss food group after eight years in charge, in a change of leadership as the company faces a challenge to grow sales.
He will be replaced by Latin America boss Laurent Freixe, the multinational food and drinks company said in a statement, adding that the move would be effective Sept. 1.
Schneider "has decided to relinquish his roles as CEO and member of the Board of Directors," the company said.
"Leading Nestle for the past 8 years has been an honor for me. I am grateful for what we have achieved, having transformed Nestle into a future-proofed, innovative and sustainable business," Schneider said in the statement.
Freixe, who joined Nestle in France in 1986, "successfully" managed the company's European zone during the 2008 financial crisis and until 2014, the statement said.
He was then named CEO of the Americas region, taking over at the newly created Latin America zone in 2022, "where he has been successfully leading through challenging conditions."
Nestle said Freixe had been nominated as a candidate for the board of directors at its 2025 annual general meeting.
Nestle, whose brands range from Nespresso coffee capsules to Purina dog food and Haagen-Dazs ice cream, lowered its sales growth outlook for 2024 last month as it slowed its price increases in the first half of the year.
The global packaged-food giant and its rivals had logged high sales growth in the past three years as they raised prices to make up for higher costs due to soaring inflation.
The company has also faced controversy in recent years, with Swiss NGO Public Eye accusing Nestle of selling baby food with high levels of added sugar in low-income countries but not in wealthier nations.
Nestle has counted that it had "no double standard" and applied the same nutrition and health principles everywhere.
It has also scrambled to ease any concerns over its Perrier brand after France's food safety watchdog recommended stricter monitoring of sites where Nestle extracts mineral water following the discovery of traces of "fecal" contamination.
The company has since said it has stepped up monitoring of the sites, and Schneider has said the group's water was safe to drink.
Nestle said Thursday that Schneider "has actively shaped the company's portfolio, in line with Nestle's strategy and with a focus on high-growth categories like coffee, pet care and nutritional health products."
Nestle chairperson Paul Bulcke praised Freixe a "a talented leader with strategic acumen, extensive in-market experience and expertise as well as a deep understanding of markets and consumers."
"Laurent is the perfect fit for Nestle at this time," Bulcke added.
