Swiss food giant Nestlé is headquartered in Vevey, Switzerland.
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LONDON—Investors may think that nestle Analyst Jon Cox said Friday that CEO Mark Schneider and company veteran Laurent Fraix “are not a bad thing.”
Cox, head of consumer equities at Kepler Cheuvreux, told CNBC he expects many investors to welcome the move after a period of lackluster performance at the world’s largest food maker.
“I think confidence in this case has been severely damaged, especially by Schneider,” he told Squawk Box Europe.
“I think most people would agree that it’s not a bad thing that Snyder is leaving now,” he said.
Nestlé shares fell 2.57% as of 8:48 a.m. London time.
The Swiss company said in a statement statement On Thursday, Schneider “decided to relinquish his duties as CEO and board member” after eight years at the helm.
Freixe, who joined Nestlé in 1986 and most recently served as executive vice president and CEO of Latin America, will take over on September 1.
Paul Bulcke, Chairman of the Board of Directors, said: “Laurent is the best candidate for Nestlé right now. Under his leadership, Nestlé will further strengthen its position as a trustworthy company through sustained and sustainable value creation. status.
The move comes as Nestle’s share price comes under pressure due to a series of profit declines.
The company has struggled to maintain market share as consumers shy away from buying labeled products amid inflationary pressures.
Cox said the timing was “unfortunate” for Schneider, but noted that investor confidence has taken a hit in recent years. He also said Schneider had made some strategic mistakes, including its failure to successfully integrate some consumer health add-on products.
Schneider joined from the health care industry in 2017, and the appointment is an unusual move for Nestlé, which usually appoints company insiders as CEOs.
“Now we’re back to the basics. We’re getting back our old employees who have been with the company for 30, 40 years,” Cox said.
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