Nestle SA is undergoing a significant leadership change as Mark Schneider steps down from his role as CEO after nearly eight years at the helm. The Swiss food giant has announced that Laurent Freixe, a long-time company veteran, will succeed Schneider as CEO starting September 1, 2024.

Schneider, 58, led Nestle through a transformative period, reshaping the company’s structure and steering it through the COVID-19 pandemic. His tenure saw the firm move away from its traditional category-led model to a more agile, geographically focused structure. Despite a strong initial post-pandemic performance, Nestle has recently faced challenges in boosting sales and maintaining customer loyalty amidst persistent inflation and shifting consumer behaviors.

Under Schneider’s leadership, Nestle diversified its portfolio and emphasized high-growth areas such as coffee, pet care, and nutritional health products. However, the company has struggled with lower-than-expected sales growth and a decline in stock performance. Shares of Nestle have fallen by eight percent in 2024, while competitors like Unilever have seen substantial gains.

Schneider reflected on his tenure, stating, “Leading Nestle for the past eight 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.” His departure marks the end of his era as the company grapples with a challenging market environment.

Laurent Freixe, 62, will step into the CEO role, bringing with him a wealth of experience from his extensive career at Nestle. Freixe joined the company in 1986 and has held various senior positions, including overseeing the Latin American region and managing Nestle’s Americas unit. Chairman Paul Bulcke praised Freixe for his “strategic acumen, extensive in-market experience, and a deep understanding of markets and consumers.”

The transition to Freixe is seen as a return to Nestle’s tradition of promoting leaders from within. Bulcke emphasized that with Freixe’s extensive background and leadership experience, there was no need to seek an external candidate. Freixe expressed his enthusiasm for the role, stating, “I am privileged to have been allowed to continue building and strengthening Nestlé.”

As Nestle embarks on this new chapter, the company and its stakeholders will be watching closely to see how Freixe’s leadership will address ongoing challenges and drive future growth.