“This was a necessary decision. Nestle’s values and governance are strong foundations of our company. I thank Laurent for his years of service,” Bulcke said in a statement.
A company veteran, Freixe joined Nestle in France in 1986. He ran the firm’s European operations until 2014, steering them through the subprime and euro crises that began in 2008.
He headed the Latin America division before his promotion as CEO.
Freixe had only been in the top spot since a surprise switch in September 2024, entrusted with reversing soft spending by consumers for the company’s food and household goods.
Nestle’s share price slumped by nearly a quarter last year, raising concerns in Switzerland, where pension funds invest heavily in the company, whose brands also include Purina dog food, Maggi bouillon cubes, Gerber baby food and Nesquik chocolate-flavoured drinks.
Nestle shares closed up 0.13% at CHF75.49 ($159.75) on the Swiss stock exchange.
Nestle shares rose slightly, despite last year’s slump and a recent 10.3% drop in profits. Photo / Getty Images
Net profits
In late July, Nestle reported a 10.3% drop in first half profits as it struggled to turn around its fortunes amid sluggish consumer spending in China, even as it passed on higher cocoa and coffee prices to consumers.
Navratil had been an executive vice-president at Nestle, which is headquartered in Vevey, on Lake Geneva.
“The board is confident that he will drive our growth plans forward and accelerate efficiency efforts. We are not changing course on strategy and we will not lose pace on performance,” said Bulcke.
Navratil started his career with Nestle in 2001 and took on various roles in Central America, leading the coffee and beverage business in Mexico from 2013 to 2020, when he took over responsibility for global strategy and innovation for the Nescafe and Starbucks brands.
He became chief executive of the Nespresso brand in July last year and joined the company board in January 2025.
“I fully embrace the company’s strategic direction, as well as the action plan in place to drive Nestle’s performance,” said Navratil, pledging to “drive the value creation plan with intensity”.
Freixe is only the latest of a string of top business figures to be propelled through the exit door in recent years over relationships with colleagues found to be in violation of internal rules.
Bernard Looney resigned unexpectedly as CEO of British energy giant BP in 2023 over his failure to disclose past relationships with colleagues.
Steve Easterbrook was ousted as chief executive of McDonald’s in 2019 for having a “consensual relationship” with an employee, in violation of company policy.
A year earlier, Brian Krzanich stepped down as chief executive of US computer chip giant Intel over a “past consensual relationship” with an employee in violation of the company’s non-fraternisation policy.
– Agence France-Presse