Nestle announced Thursday that it it replacing Mark Schneider as its CEO with a long-time executive. This comes as the world’s largest packaged food seller is facing pressure from cash-strapped consumers tired of price hikes.
Schneider had been with the company for the past eight years and was the first external hire for the job in almost 100 years.
“I am grateful for what we have achieved, having transformed Nestlé into a future-proofed, innovative and sustainable business,” Schneider said in a statement.
Schneider is set to be replaced with Laurent Freixe, who currently serves as Nestle’s executive vice president and CEO of its Latin American division. He first joined the company in 1986.
“I have known Laurent for a long time and highly regard him as a talented leader with strategic acumen, extensive in-market experience and expertise as well as a deep understanding of markets and consumers,” said Nestle board chairman Paul Bulcke in a statement. “He has demonstrated his ability to deliver results in challenging market conditions.”
Freixe will start his new leadership role on Sept. 1.
One analysts said that some investors may welcome the change, considering Nestle’s recent performance.
“I think confidence has been severely hit in the case and particularly in Schneider,” Jon Cox, an analyst at Kepler Cheuvreux, told CNBC’s Squawk Box Europe. “I presume most people will think it’s not such a bad thing at this point for Schneider to go.”
In its most recent quarterly earnings, Nestle cut its full-year sales outlook to 3%, from a previous target of 4%.
Schneider previously said that price hikes have increased pressure on consumers and slowed demand.
Nestle stock is down nearly 10% since the start of the year.