Nestle(US:NSRGY) Mei Ri Jing Ji Xin Wen·2025-09-18 22:19Core Insights - Nestlé Group has experienced significant leadership changes in 2023, including the dismissal of former CEO Laurent Freixe due to undisclosed personal conduct and the appointment of Philipp Navratil as the new CEO [1][10] - The company announced the resignation of Chairman Paul Bulcke, with Pablo Isla set to take over on October 1 [3][11] - The changes come amid challenges in the Chinese market, where Nestlé's organic growth rate for the Greater China region was reported at -4.2% in the first half of the year [5] Leadership Changes - Laurent Freixe was dismissed from his position as CEO due to a violation of Nestlé's code of conduct related to an undisclosed relationship with a subordinate [10] - Philipp Navratil, who has been with Nestlé since 2001 and has extensive experience in the coffee business, has taken over as CEO [10][11] - Paul Bulcke's resignation as Chairman was anticipated, as he had previously announced plans to step down [11] Business Adjustments - Nestlé has made several personnel changes in its China operations, including the reassignment of key positions such as the General Manager of R&D in China [4][8] - The company is shifting its business model in China from a distribution-driven approach to one focused on consumer demand [9] - The new leadership is expected to drive innovation and adapt to rapidly changing consumer preferences in the Chinese market [6][7] Market Context - The adjustments at Nestlé reflect broader trends among foreign food and beverage companies in China, which are also reevaluating their strategies in response to market dynamics [5] - The company is currently working on six major innovation projects and addressing 18 underperforming business units [11] - The leadership transition is seen as a critical moment for Nestlé, with expectations that it will influence the company's strategic direction moving forward [11]