Nestle, the global food giant, has lowered its sales growth expectations for 2024 and announced a leadership reshuffle. The move comes as the company grapples with a decline in sales and a series of product scandals.
Laurent Freixe, the newly appointed CEO, who took over from Mark Schneider on September 1, has implemented significant changes to the company’s structure. Freixe, a former head of Nestle’s Latin America unit, is tasked with turning the company around.
The company reported a 2.4% drop in sales for the first nine months of the year compared to the same period last year. This decline is attributed to weakened consumer demand and the ongoing impact of high inflation.
Nestle has now revised its annual sales outlook from 3% to 2%, reflecting the challenging market conditions. The company had previously cut its forecast from 4% to 3% in July.
In addition to the sales forecast revision, Nestle has announced several leadership changes. The company is merging its Latin America and North America divisions into a single Americas unit and incorporating its Greater China region into its Asia, Oceania, and Africa zone.
Freixe emphasized the importance of these changes in streamlining the company’s operations and focusing on consumer needs. He stated that the new structure will allow for more direct reporting and better decision-making.
Analysts have expressed concerns about the severity of the sales forecast revision and the challenges ahead for Nestle. They believe that the company faces a significant task in restoring its market share and accelerating its performance.
Despite these challenges, Nestle remains committed to its core values and is focused on delivering quality products to its consumers. The company’s leadership team is working diligently to address the issues and ensure a brighter future for the global food giant.
