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Swiss food giant Nestlé is headquartered in Vevey, Switzerland.
Fabrice Covrini | AFP | Getty Images
LONDON — Investors may think Nestle Analyst Jon Cox said Friday that CEO Mark Schneider’s collaboration with company veteran Laurent Freixe “is not a bad thing.”
Cox, head of consumer equities at Kepler Cheuvreux, told CNBC he expected many investors would welcome the move after a tough period for the world’s largest food manufacturers.
“I think this case has dealt a serious blow to people’s confidence, especially in Schneider,” he said.European Financial Forum“”.
“I think most people would agree that, given the circumstances, it’s not a bad thing for Snyder to leave,” he said.
At 8:48 a.m. London time, Nestle shares fell 2.57%.
The Swiss company said in a statement statement On Thursday, Schneider, who had been at the helm for eight years, “decided to resign as CEO and member of the board of directors.”
Frakes, who joined Nestle in 1986 and most recently served as executive vice president and CEO of the Latin America division, will take over on September 1.
Paul Bulcke, Chairman of the Nestlé Board of Directors, said: “Laurent is the best person for Nestlé at this time. Under his leadership, Nestlé will further consolidate its position as a reliable and trusted company through continuous and sustainable value creation.”
Nestle’s move comes as its shares have come under pressure following a series of earnings misses.
The company has been struggling to maintain market share as inflationary pressures have led consumers to move away from labelled products.
Cox said Schneider’s timing was “unfortunate,” but noted that investor confidence has been battered in recent years. He also said Schneider had made a number of strategic mistakes, including failing to successfully integrate a series of consumer health add-on businesses.
Schneider joined Nestle from the healthcare industry in 2017, and the appointment is an unusual move for Nestle, which typically appoints company insiders as CEOs.
“Now we’re back to square one. We’re back to the old guys who were with the company for 30 to 40 years,” Cox said.
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