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Nestlé is shifting its business approach in China, focusing on consumer-driven growth rather than just expanding distribution channels, according to the company’s CFO. Despite a slight decrease in sales during the first half of the year, Nestlé China, under CEO Kais Marzouki’s leadership, is actively managing its inventory and pricing strategies to maintain healthy product channels and ensure freshness. The company is targeting specialized segments, such as hypoallergenic infant formulas, which are providing strong growth, while also emphasizing swift responsiveness to meet diverse consumer preferences.
Additionally, the CFO confirmed that Laurent Freixe, the former CEO, has stepped down amid internal allegations of favoritism and an inappropriate relationship with an employee. An internal inquiry conducted in May, overseen by the board, found no evidence supporting those claims, and Freixe denied any wrongdoing. However, subsequent external investigations revealed a breach of conduct, leading to his departure.
Philip Jucker, a veteran with over 20 years of experience at the company—particularly in leading the international coffee division and Nespresso—has taken over as CEO. Jucker has a successful track record of expanding Starbucks globally and now brings that expertise to Nestlé.
The company is reaffirming its “fewer, bigger, better” approach, targeting the turnaround of 18 underperforming units that represent about 21% of total revenue. Investment is also being directed into high-growth areas such as ready-to-drink coffee and pet therapeutics. Notably, four subsidiaries—including Milo and certain Brazilian Asian biscuit brands—have increased their market share, reducing their negative impact on overall growth by more than a third over the past six months. This strategic focus is expected to persist under Jucker’s leadership.
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