Nestle SA has named Laurent Freixe as chief executive officer, taking over from Ulf Mark Schneider, who is leaving the company.

Plans call for Freixe, currently executive vice president and CEO for Latin America, to take the reins as global CEO on Sept. 1. He also is slated to be nominated to the board of directors at the company’s 2025 Annual General Meeting next April.

In announcing the leadership change on Aug. 22, Nestle said current CEO Schneider “has decided to relinquish his roles as CEO and member of the board of directors” but didn’t specify a reason for his planned departure from the company.

Schneider has been Nestle’s CEO since January 2017. The food and nutrition industry giant said he has “actively shaped the company’s portfolio” by sharpening its focus on high-growth categories such as coffee, pet care and nutritional health products.

“Leading Nestle for the past eight years has been an honor for me,” Schneider said. “I am grateful for what we have achieved, having transformed Nestle into a future-proofed, innovative and sustainable business. I would like to thank the entire Nestle community for what we have accomplished together and wish Laurent all the best in his new role.”

Freixe has held the Latin America CEO role since January 2022. He joined Nestle in France in 1986 and since then rose through the executive ranks to positions of increasing responsibility across different businesses, markets and geographies. The company said he “successfully managed” Zone Europe from 2008 until 2014 during the financial and economic crisis and “accelerated growth” as CEO of Zone Americas, being appointed to that post in 2014. Other roles have included head of Nestle France’s nutrition division, CEO of Nestle Hungary and CEO of Nestle’s Iberian region. He was appointed CEO Zone Latin America in 2022 after Nestle created a new zone structure.

“I am privileged to have been given the opportunity to continue building and strengthening Nestle, and I am excited to take on this responsibility,” Freixe said. “There will always be challenges, but we have unparalleled strengths, such as iconic brands and products, an unmatched global presence, leading innovation and execution capabilities, and above all, exceptional people and teams. We can strategically position Nestle to lead and win everywhere we operate.”

A 16-year member of Nestle’s executive board, Freixe also has led several global corporate initiatives, including efforts to improve productivity, hone operational efficiency, simplify processes and spur innovation, as well as develop talent and future leaders, the company said.

“The board of directors is delighted to announce the appointment of Laurent as the new CEO,” said Paul Bulcke, chairman. “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. He has demonstrated his ability to deliver results in challenging market conditions. Laurent’s curiosity fuels his passion for innovation and positive change. Laurent is the perfect fit for Nestle at this time. Under his leadership, Nestle will further strengthen its position as a dependable, reliable company through consistent and sustainable value creation.”

Overall, Vevey, Switzerland-based Nestle has 270,000 global employees and produces more than 2,000 brands, which are sold in 188 countries in five zones: North America, Latin America, Europe, Greater China and Asia/Oceania/Africa. Its product categories run from baby food, bottled water, cereal, chocolate and confectionery, coffee, and refrigerated and frozen foods to dairy, beverages, ice cream, pet care, health care nutrition and foodservice.

The company, with 2023 sales of 93 billion Swiss francs ($109 billion), said it has 31 “billionaire brands,” including Nespresso, KitKat and PurinaOne. Net earnings in the first half of fiscal 2024 came in flat at 5.6 billion Swiss francs ($4.98 billion), while sales fell 2.7% to 45.05 billion Swiss francs ($40.05 billion).

Nestle’s shares (ADR) fell nearly 6% with the news of Schneider’s exit, opening at $105.51 on Aug. 22 and closing out the day at $99.53. The share price has risen 41% since Schneider took over as CEO at the start of 2017. On the Swiss exchange, the stock opened at 89.42 Swiss francs on Aug. 22 and closed at 89.44, with the price up almost 22% from 73.60 in the beginning of 2017.

“I would also like to express our gratitude to Mark for his significant contributions to Nestle and for his outstanding, steady leadership in turbulent times,” Bulcke added. “Mark has been instrumental in the great progress we have made on our sustainability agenda. We extend our best wishes to him in all his professional and personal endeavors.”