Laurent Freixe was appointed Nestlé CEO in August 2024 | Photo credit: Nestlé

Nestlé has announced changes to its organisational structure and Executive Board as new CEO Laurent Freixe seeks to put the food & beverage giant back on track following weaker than expected nine-month sales. 

Reporting on the nine-months ending 30 September 2024, the Swiss food and beverage giant posted a 2.4% year-on-year sales decline to CHF 67.1bn ($77.5bn). 
 

In a press release, Freixe said consumer demand had ‘weakened’ in the third quarter – with year-on-year sales across all reporting segment, bar Nestlé Health Science, down compared to 2023.

Vevey-based Nestlé also cited consumer hesitancy towards global brands, linked to geopolitical tension, as a factor behind softer demand.   

However, Nestlé highlighted its Nescafé, licensed Starbucks and Nespresso coffee brands as achieving mid single-digit sales growth over the first nine months of 2024. Nescafé instant coffee products in Europe and ready-to-drink offerings across Asia, Oceania and Africa were highlighted as key performers. 
 

In a separate press release, Nestlé announced that its geographical reporting segments will reduce from seven to five on 1 January 2025 in a bid to increase simplicity, drive consistency in reporting and speed-up internal decision-making.

Nestlé’s Zone Latin America and Zone North America segments will merge to form Zone Americas, which will be led by Nestlé North America CEO Steve Presley.  
 

Additionally, the Swiss food and beverage giant’s Zone Greater China Region will be absorbed by the larger Zone Asia, Oceania and Africa segment. The division will continue to be led by Remy Ejel, with Greater China Region CEO David Zhang stepping down from Nestlé’s Executive Board. 
 

Nestlé’s Zone Europe segment remains unchanged and will continue to be led by Guillaume Le Cunff. The company’s remaining segments are Nestlé Health Science and Nespresso – which is led by Philipp Navratil. From 1 January 2025, Navratil will join Nestlé’s Executive Board and report directly to Freixe. 

“A leaner Executive Board structure and close collaboration of the leadership team at the headquarters will increase simplicity, speed up decision-making and strengthen the momentum behind global initiatives,” said Freixe, who became CEO in August 2024. 
 

“All the leaders of key units driving our performance and our transformation will now report directly to me. This is crucial, as we sharpen our focus on consumers and customers and restore investment in our brands and in innovation to expand market share and accelerate our performance,” he added. 
 

In a further reshuffle of its executive structure, Head of Nestlé Coffee Brands David Rennie will succeed Bernard Meunier as the Head of Strategic Business Units (SBUs) on 31 March 2025. As part of the move, Nestlé Coffee Brands, with the exception of Nespresso, will be integrated into the SBU organisation. 

Nestlé has lowered its full-year sales growth guidance from 3% to 2%.