Nestle Reorganizing To Drive Digital Transformation and Become 'AI-Powered Organization'
Nestlé is reorganizing its operating structure and streamlining its executive board.
Nestlé CEO Laurent Freixe said in a statement that a leaner board will increase simplicity, speed up decision-making, and strengthen the momentum behind global initiatives. Under the changes, all leaders of key units now report directly into Freixe, who took the helm last month.
“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 said. “Going forward, we are also placing a greater emphasis on Nestlé’s digital transformation into a real-time, end-to-end connected, data- and AI-powered organization.”
The CPG reported 2% organic sales growth for its nine-month sales, noting consumer demand had weakened in recent months and was expected to remain soft. E-commerce sales increased 9.7% and now account for 18.5% of total sales.
Like most consumer goods companies, Nestlé is dealing with a bifurcated consumer, and they’re focused on balancing premiumization opportunities with price sensitivity.
“We believe that premiumization is a tremendous opportunity across categories, offering better products, more services, more convenience, better taste. That's a big source of the innovation drive,” said Freixe on a call with investors. “But we are also mindful of affordability. … We see the polarization in the society continuing. It's even more acute in times of crisis.”
He added: “You've got people that are ready to spend on food and are eager to find or to get customized experiences. So, we want to cater for that, of course. But the overall topic of affordability is also so important. You can have the best product. If it's overpriced, it will not sell.”
Leadership Changes
The last Nestlé restructuring took place in 2022, under then-CEO Mark Schneider. Under that structure, the company focused on building local relevance within its five core regions.
As part of these new changes, Nestlé’s North America and Latin America regions, which the company calls zones, will merge to form Zone Americas (AMS). It will be led by Steve Presley, who is currently EVP and CEO of North America. Presley will relocate to Nestlé’s headquarters in Vevey, Switzerland.
Zone Greater China Region will become part of Zone Asia, Oceania and Africa, under the leadership of Remy Ejel.
David Zhang will step down from the executive board and will remain chairman and CEO of the Greater China Region.
CIO Chris Wright will now report to Freixe without holding a position on the executive board.
Bernard Meunier will step down from the executive board on March 31, 2025, and will lead strategic projects for the group. He will be succeeded by David Rennie, currently head of Nestlé coffee brands, who will assume the role of head of strategic business units and marketing and sales.
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Nestlé coffee brands will be integrated into the strategic business unit organization, with the exception of Nespresso, which is led by Philipp Navratil. Navratil will join the executive board and now report directly to Freixe.
Guillaume Le Cunff will continue to lead Zone Europe, and Nestlé Health Science will continue to be led by Anna Mohl.
Béatrice Guillaume-Grabisch, head human resources and business services is stepping down. Anna Lenz, currently country manager of Nestlé Portugal, will lead HR and join the executive board. Hans-Ulrich Mayer will remain in charge of business services and report to CFO Anna Manz.
Antonia Wanner, who leads the sustainability unit, will now report directly to Freixe without holding a position on the executive board.
