Nestle(US:NSRGY) 3 6 Ke·2025-09-05 00:18Group 1: CEO Succession and Management Changes - The CEO Laurent Freixe was dismissed due to internal reports of inappropriate favoritism and a romantic relationship with an employee, leading to an internal investigation by the board [3][4] - Philipp Navratil was appointed as the new CEO, with the board believing he could bring a fresh perspective and accelerate transformation within the company [4][6] - The board had previously conducted extensive work on succession planning, considering both internal and external candidates, which allowed for a swift decision in Navratil's appointment [3][4] Group 2: Business Strategy in Greater China - Nestlé is shifting its growth strategy in Greater China from channel distribution to consumer demand-driven sales, while also reducing inventory and adjusting management [7][9] - The company has seen positive performance in its infant nutrition brand, which has successfully captured consumer needs by offering specialized products [9] - The coffee business in China is a focus area, with Nestlé collaborating effectively with Luckin Coffee on product development and innovation [9][10] Group 3: Pricing Strategy and Market Performance - Nestlé is facing pricing pressure due to rising costs of raw materials, particularly in coffee and chocolate, and has implemented price increases of approximately 10% for chocolate and 5% for coffee [12][14] - Despite price increases, the company has maintained strong market performance by increasing marketing investments for the raised price categories [12] - Price elasticity varies by product category, with chocolate showing higher elasticity than coffee, indicating that coffee consumption habits are more resistant to price changes [14]