The world’s biggest food and drink company has ousted its second CEO in just over a year.
On Monday, Nestlé terminated Laurent Freixe, 63, who had been at the helm since September 2024, due to findings from an inquiry into a code of conduct violation.
Freixe’s departure occurs as the corporation—which markets Gerber baby food, Purina pet foods, Nescafé coffee capsules, and KitKat chocolates—has been trailing behind its rivals in sales growth.
Nestlé said Freixe was dismissed after an investigation found he had an undisclosed romantic relationship with a direct subordinate.
‘This was an essential move,’ stated Paul Bulcke, a board member involved in leading the investigation. ‘The robust values and governance of Nestlé are pillars of our organization. I appreciate Laurent for his dedicated years of service.’
Nestlé has held the title of the world’s largest food and beverage company by sales for the past decade.
In the US, Nestlé dominates grocery aisles with its grab-and-go products, particularly in the coffee, pet, baby, and candy sections.
Nestlé — which also owns a fifth of beauty giant L’Oreal — has attempted to attract younger audiences with star-studded product endorsements.
Laurent Freixe, the company’s top boss since September 2024, was removed from his role after an internal investigation
L’Oréal has enlisted prominent celebrities like Kendall Jenner as brand ambassadors, capitalizing on her fame to enhance campaigns such as ‘Because You’re Worth It’ and engage Gen Z audiences.
The Swiss giant employs hundreds of thousands globally and generated over $101.5 billion in sales in 2024, outpacing Pepsi’s $91 billion.
But sales have been slipping.
In July, the company announced a 1.8 percent downturn in global sales, attributing the increase in production costs of its sugary and caffeinated products to the dependency on higher-priced exports from Central America.
Meanwhile, giant global competitors like Unilever and Danone posted significant increases in their sales and profits.
Top bosses at Nestlé have been embroiled in several major controversies since 2020.
Bulcke, who held the CEO position from 2008 to 2016, was at the center of a harassment lawsuit himself.
Yasmine Motarjemi, a former internal food safety inspector, claimed that she had alerted the company about toxicity issues in baby foods. She also alleged in court that the company retaliated against her for alerting them to these problems.
Phil Navratil, the boss of a coffee division, will take over as the company’s next leader
Nestlé owns a 20 percent stake in L’Oreal – the companies have leaned heavily into celebrity endorsements, including a recent hair care ad campaign with Kendall Jenner
George Clooney has been a long-time celebrity spokesperson for the Nespresso coffee brand
In 2020, the company decided to pay her around $2.5 million in damages.
‘What hypocrisy!’ Motarjemi said on LinkedIn after Monday’s ouster.
‘In other words, at Nestlé, you can harass your subordinates, but you can’t love them.’
Freixe, the Paris-born executive who joined the company in 1986, is the second straight CEO to be removed.
His expulsion comes 13 months after his predecessor, Mark Schneider, was removed following a seven-year stint.
Schneider had ruffled global political feathers as the top boss for his willingness to sell products in Russia after the invasion of Ukraine.
Phil Navratil, who began his career with Nestlé in 2001 as an internal auditor, will take over as the top boss.
After holding various commercial roles in Central America, he was appointed country manager for Nestlé Honduras in 2009.
He assumed leadership of the coffee and beverage business in Mexico in 2013 and transitioned to Nestlé’s Coffee strategic business unit in 2020.
He joined Nespresso in July 2024 and was appointed to the Nestlé executive board as of January 1 this year.
‘I fully embrace the company’s strategic direction, as well as the action plan in place to drive Nestlé’s performance,’ Navratil said.
The company didn’t immediately respond to the Daily Mail’s request for comment.
