Core Insights - Nestlé's CFO Anna Manz addressed the recent dismissal of former CEO Laurent Freixe, stating it was due to internal reports of inappropriate conduct, leading to a second external investigation that confirmed misconduct [2][3] - The company is shifting its growth strategy in China from distribution-driven to consumer demand-driven, focusing on optimizing inventory management and market pricing [3] Group 1: Leadership Changes - Laurent Freixe was appointed CEO in September 2024 and implemented a new strategy emphasizing "fewer, bigger, better" initiatives, moving away from previous methods of improving business structure through sales and acquisitions [2] - The new CEO of Nestlé China, Kais Marzouki, took over from Zhang Xiqiang on July 1, 2023, amid a slight decline in sales for the first half of 2025 [3] Group 2: Strategic Focus - Nestlé is concentrating on strict performance management of 18 underperforming business units, which account for 21% of revenue, while prioritizing growth platforms like ready-to-drink coffee and pet healthcare [3] - The company aims to meet the increasingly diverse and segmented needs of consumers, particularly in niche markets such as allergy-specific infant formula, while ensuring rapid response to local consumer demands [3]

Core Viewpoint - Nestlé is undergoing a strategic transformation in the Chinese market, shifting from distribution-driven growth to consumer demand-driven growth, as highlighted by CFO Anna Manz during the Barclays Global Consumer Conference [3][4]. Group 1: Leadership Changes and Internal Investigations - The dismissal of former CEO Laurent Freixe was due to internal reports of inappropriate conduct, leading to a second external investigation that confirmed misconduct [3]. - Freixe's leadership saw a strategic shift towards a focus on fewer, larger, and better-performing business units, which is expected to continue under the new leadership [4]. Group 2: Performance and Strategic Focus - Nestlé is implementing strict performance management on 18 underperforming business units, which account for 21% of revenue, while emphasizing growth platforms like ready-to-drink coffee and pet healthcare [4]. - In the first half of 2025, Nestlé China's sales experienced a slight decline, prompting a focus on optimizing inventory management and maintaining product freshness [4]. Group 3: Consumer Demand and Market Adaptation - The company aims to replace the old distribution-driven growth model with a new model driven by consumer demand, responding quickly to local consumer needs [4]. - Nestlé is focusing on meeting the increasingly diverse and segmented demands of consumers, particularly in niche markets such as allergy-specific infant formula [4].

Group 1 - The dismissal of former CEO Laurent Freixe was due to internal reports of inappropriate behavior, leading to a second external investigation that confirmed misconduct [1] - Anna Manz highlighted a shift in Nestlé's growth strategy in China from distribution-driven to consumer demand-driven [1][3] - The company is focusing on strict performance management of underperforming business units, which account for 21% of revenue, while emphasizing growth platforms like ready-to-drink coffee and pet healthcare [3] Group 2 - Nestlé China has recently appointed a new CEO, Kais Marzouki, as part of its leadership changes [3] - The sales revenue of Nestlé China showed a slight decline year-on-year for the first half of 2025 [3] - The company aims to optimize inventory management and market pricing to maintain channel health and product freshness, responding quickly to local consumer demands [3]