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The accuracy crisis is “cutting heads” at multinational consumer goods

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Another CEO on the way out

Η κρλση ακρλβεια σκεφι»σισοενι κς κατναλτικιδν /></p> <p> Photo: Shutterstock </p> <p>Another CEO in the consumer goods sector has seen the exit door as major multinationals struggle to attract buyers to their branded products after a period of high inflation forced them to tighten their belts. The departure of Nestle CEO Mark Schneider after eight years at the helm of the Nespresso coffee company among other well-known brands came as a surprise. His place is taken by the head of the group for Latin America, Laurent Freixe.</p> <p>The fact that Schneider's departure was announced just days before a series of appearances he was scheduled to make, including at a Barclays event, raised suspicions that Nestle was preparing to downgrade its figures, sending its stock under pressure. . Freixe told analysts the company will review its financial targets in November.</p> <p>Schneider's departure comes just days after the sudden firing of Starbucks CEO Laxman Narasimhan. After less than two years in the job, he will be replaced by Chipotle chief Brian Niccol.</p> <p>Estee Lauder CEO Fabrizio Freda plans to retire in 2025 after the cosmetics company ran into problems last months.</p> <p>Last year, new CEOs took over at Unilever, Reckitt Benckiser and Diageo. All of them are trying to regain investor confidence in an environment where interest rates remain high and consumers continue to spend in moderation.</p> <p>While retail chains such as Walmart and Target have adapted to this greater consumer wariness , mostly pushing cheaper private-label products, companies like Nike have fallen behind, Bloomberg notes.</p> <p>“The pandemic, supply chain disruptions, the highest inflation in 50 years, rapidly rising interest rates and negative consumer sentiment have all conspired to create a challenging environment for the average consumer goods company,” notes Eric Clark, portfolio manager of Accuvest Global Advisors.</p> <p>Until recently, Schneider had earned credit from investors as the CEO who restructured Nestle, fending off a 2017 attack by activist investor Third Point. He proceeded with profitable sales of the company's units, focused on persuading consumers to pay more for premium versions of Nestle products and strengthened its presence in the health and wellness segment. With the help of its local production, the company was less affected by supply chain problems.</p> <p>But in recent years, its star began to dim as Nestle struggled to win back consumers after inflationary crisis, causing its quarterly sales to repeatedly disappoint.</p> <p>However, unlike Starbucks, Nestle did not look for an outside CEO, choosing someone who understood the company's culture and implied that there will be no drastic changes to Schneider's strategy.</p> <p>Freixe, who has worked at Nestle since 1986, assured reporters that he would focus on making sure “we keep our promises and focus on the basics , we focus on winning in the market”.</p> <p><noindex></p> <div class=Source: www.kathimerini.com.cy

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