Nestlé, established in 1866, is a global leader in the food and beverage industry, offering a diverse range of products across various categories. As of September 1, 2024, Laurent Freixe has taken the helm as the company’s Chief Executive Officer (CEO), succeeding Ulf Mark Schneider.
This topic delves into Freixe’s background, career trajectory, and the strategic direction he envisions for Nestlé.
Early Life and Education
Laurent Freixe was born on April 21, 1962, in Paris, France. He pursued higher education at EDHEC Business School in Lille, France, where he earned a degree in business. Furthering his education, Freixe attended the International Institute for Management Development (IMD) in Lausanne, Switzerland, enhancing his leadership and management skills.
Career at Nestlé
Initial Roles and Ascension
Freixe’s journey with Nestlé began in 1986 when he joined the company in France, focusing on sales and marketing. His dedication and expertise led to rapid advancements within the organization:
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1999: Appointed head of the Infant Nutrition division in France.
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2003: Became Market Head for Nestlé Hungary, overseeing operations and market strategies.
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2007: Assumed the role of Market Head for Nestlé Spain and Portugal, managing regional business activities.
Executive Leadership
Freixe’s leadership capabilities were further recognized with significant executive positions:
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2008: Appointed Executive Vice President and Head of Zone Europe, responsible for Nestlé’s operations across European markets.
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2014: Took on the role of Executive Vice President and Head of Zone Americas, managing Nestlé’s largest market encompassing North and South America.
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2022: Focused on the Latin American market, driving growth and operational excellence in the region.
Throughout his tenure, Freixe has been a member of Nestlé’s Executive Board, contributing to strategic decisions and global initiatives.
Appointment as CEO
In August 2024, Nestlé announced that Ulf Mark Schneider would step down as CEO, with Laurent Freixe slated to succeed him effective September 1, 2024. This transition marked a significant shift in Nestlé’s leadership, bringing in a seasoned executive with deep-rooted experience within the company.
Strategic Vision and Initiatives
Focus on Core Brands
Under Freixe’s leadership, Nestlé aims to refocus on its core brands, including Nescafé, KitKat, and Maggi. This strategy emphasizes strengthening market share, driving innovation, and enhancing product quality to meet evolving consumer preferences.
Cost Management and Marketing Investment
To bolster profitability, Freixe has outlined plans to reduce costs by at least $2.8 billion by 2027. Simultaneously, the company intends to increase its advertising and marketing expenditure to 9% of total sales by 2025, aiming to invigorate brand presence and consumer engagement.
Organizational Restructuring
Freixe is overseeing the creation of a standalone global unit dedicated to Nestlé’s water and premium drinks businesses. This restructuring is designed to streamline operations and foster focused growth in these segments.
Addressing Demographic Shifts
In response to declining global birth rates, Nestlé, under Freixe’s guidance, is adopting a premiumization strategy for its infant nutrition products. The company is also expanding its focus to include supplements and fortified foods for the elderly, addressing the nutritional needs of aging populations.
Challenges Ahead
Freixe faces the task of revitalizing Nestlé’s growth amidst economic pressures and internal challenges. The company has experienced a slowdown due to inflation and competition from store brands, leading to lower sales forecasts and profits. Addressing these issues requires strategic agility and a commitment to innovation.
Laurent Freixe’s appointment as CEO ushers in a new era for Nestlé. His extensive experience within the company and strategic vision position him to navigate the complexities of the global food and beverage industry. By focusing on core brands, optimizing costs, and adapting to demographic changes, Freixe aims to steer Nestlé toward sustained growth and continued leadership in the market.