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Nestley’s Chief Executive Laurent Frexi said that his predecessor’s new product category includes health supplements “weakened the company’s fabric”, as he gave big acquisition or return sales to increase growth.
In an interview with the Financial Times, a company that replaces Mark Snyder in Mark Snyder last August, the diversity under Snystli’s original business line – coffee, stomach and food – was neglected.
“If you give all your emphasis on developing new places. You will weaken the original. I think it’s part of the problem that Nestley has faced,” Frex added, “Losing part from the original and weakening the company’s fabric is not a winning offer”.
In 2017, Snyder Nestley has become the second exterior of a top job in 160 years of history. Former Healthcare began multiple acquisitions, including food allergic treatment and fitness complementary to the Executive Healthy, High-Margin Department to try to re-balance the portfolio.
Snyder was replaced by Frex – a globbatroting nestly veteran of about 40 years – after its expiration slow down. People familiar with the organization said Snyder’s obvious style collided with corporate culture that spreads this group on the back of Kitikat and Nescafi é
Now Fix is working on the top, he is re -focusing on his original brands and trying to recover the culture that has been lost. The French lake, working for Nestley, Hungary, Spain and Latin America, has removed the main regional heads that return to the vast headquarters of Vevi Nestley, ignoring the Geneva.
Although Fix says that he and Snyder “understood each other very well”, the main difference between them was that he had an “intimate” knowledge of the internal work of the nest machine. “Because of that, and probably my style, I’m very close to the people, so it’s a big advantage,” he said.
Some consumer product companies predict that after the increase in inflation, the next US duty will increase the price of another round. However, Frex believes that there is more powerful mobility in the game.
“Demand is relatively weak, the supply is returning and the competition is intense,” he said.
Nestley and its rivals have reduced volume growth speed as tired customers become cheap alternatives. Last year, nestley’s organic growth stood up to 2.2 percent to 2.2 percent a year ago. The Swiss company has dropped by 2.9 percent at SFR 10.9BN at net profit.
Unilever, Reckit Benkizar and Danon are all decreasing – selling under performing brands and trying to restore pivoting in higher margin sections. Fix, however, said that he focused on re -vibrating the original business of Nestley.
“There are always people who are…. [see] Portfolio [management] As a quick solution, “he said.” I think we should never forget that M&A is not a strategy. “
Both are not suppressed by the CEO of the Nestley, which will make the slimming down -down company more dynamic. Fix said that he didn’t see Nestley’s “Qualification”, until it could take advantage of its scale and “bring speed”.
However, some analysts have asked why Nestley is holding on to its frozen US frozen food business. Its frosty and cool food range sales – which contains Digiorno pizza and hot pocket snacks – last year, SFR 4.1 BN, partially driven towards Nestly’s frozen food business in Canada.
Although the sales of packaged foods have been slowing for almost a decade and healthy eating is increasing, Fix emphasizes that there is nothing “fundamentally wrong” with the category.
“There is the frequency of use here … and we are the leader. That’s important.” However, Frix admits that it lost “relevance and competition”, adding nestly prices trying to reduce the price.
Nestley’s boss was intimate that he would be open to selling brands that were structurally sitting in obsolete categories where Nestley “is not in a position to win”.
It includes the cutting of nestley’s hassle water business. A report by the French Senate Committee this week showed that the government has covered the use of illegal filtering treatment for products identified as “natural mineral water”.
Nestley said the committee’s decisions showed the need for more clear, more continuous regulations and it was safe to drink all its natural mineral water products. Fix said the company was in search of investors to set up a joint venture agreement for the water business.
Last November, the Fix Nestley’s medium-term profit margin guidance was cut off at least 5 per cent, from Snyder to 5.5 percent to 5.5 percent range and $ 2.5 billion spending drive drive.
He said that it was a time when we need “realism” than “dream”, consent to consumer demand and the consent to subdue US President Donald Trump’s rapidly developed tariff system.
Although Fix acknowledged that demand is weak, he emphasized that the growing popularity of GLP -1 weight loss drugs, including Ozampic and Wagovi, is not a reason.
A recent survey of Colonel University found that customers have reduced their grocery cost by about 6 percent by using GLP -1 drugs. Fix said that Nestley could not have the experience of quitting sales behind the growing use of drugs and its portfolio – which is leaning towards coffee and pet food – means that this company was in a good position for any future effect.
He also added that the initial sales of new products specially made for GLP-1 users-such as the range of nestly high protein prepared foods.
Meanwhile, Trump’s Robert F. Kennedy has created another possible problem for Frex for the appointment of Trump as Robert F. Kennedy. Kennedy has a policy to prevent the use of ultra-processed foods and reduce Americans to reduce sugar intake.
It can have a significant impact on nestley dessert and prepared food business, which is 15 percent of the global sales.
However, Fix said that Nestley was “very lined” with the Kennedy mission. “The quality of food, the nutritional density, the promotion of the regenerative farming, this is our agenda.”
