Nestle CEO Laurent Freixe in Love Scandal

Nestle, a Swiss-based multinational that is the largest global food and beverage firm, made a wide-ranging overhaul in leaders last week after Nestle CEO Laurent Freixe was fired immediately. He was fired following an internal probe that showed that Nestle CEO Freixe had been in a secret romantic relationship with a direct report, a breach of Nestle’s stringent Code of Business Conduct.

It caused a sensation in global corporate circles both because of how it was done but also because of how critical Nestle is to the global consumer goods sector. The board was quick to act and selected Philipp Navratil, former CEO of Nespresso, to be his new chief executive.

Why Was Nestle CEO Laurent Freixe Fired?

As stated in Nestle’s official reaction, the sack was due to a violation of corporate governance policies. The board made it clear that integrity and openness remain central to how the company operates and thus made this decision imperative.

Chairman Paul Bulcke and Lead Independent Director Pablo Isla presided over the investigation in consultation with external legal counsel. The investigation determined that Freixe’s failure to reveal a relationship with a direct subordinate was a conflict of interest and a breach of internal Nestle policies enacted to create fairness and accountability among its global 270,000-member employee base.

This was a decision that was required. Leadership and principles at Nestle are firm foundations upon which our business is built. I thank Laurent for his long service,” Bulcke was quoted in a press release.

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Who is Laurent Freixe?

Laurent Freixe was a veteran employee at Nestle, who entered in France in 1986. He advanced stepwise in his career and assumed lead roles in several regions:

• 1986: Joined Nestle France in marketing and sales.
• 1999: Assumed Head of Nutrition Division position in France.
• 2003: Made CEO of Nestle Hungary.
• 2007: Promoted to CEO of the Iberian Region.
• 2008: Elected to Nestle Executive Board as EVP with charge of Zone Europe.
• 2014: Appointed CEO of Zone Americas, which is Nestle’s largest market.
• 2022: Appointed CEO Zone Latin America in new geographic operating model of the firm.
• September 2024: Abruptly made CEO of Nestle S.A.

Freixe was regarded as a natural leader who was instrumental in rolling out the Nestle Needs YOUth program in 2013 and creating employment and development opportunities for a staggering number of youth. His rapid downfall serves to highlight how even senior executives can’t escape corporate governance rules.

Nestle CEO Freixe took over at a difficult time. Sales were declining across Europe, Asia, and Latin America due to wider rates of inflation, supply bottlenecks, and higher commodity prices.

Under his work profits fell 10.3% in the first half of 2024 as consumers tightened spending. Nestle’s shares fell by almost 25%, shocking Swiss pension fund investors who are mainly invested in the group. Higher costs for cocoa and coffee caused Nestle to raise prices again and further decrease demand.

Despite these setbacks, Nestle CEO Freixe was tasked with re-mobilizing Nestle’s brand strategy and returning growth to a positive trajectory. His abrupt dismissal raises new questions about whether his tenure accelerated Nestle’s decline.

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Who Is Philipp Navratil, Next Nestle CEO?

It then installed Philipp Navratil as its new Chief Executive Officer. An old Nestle hand, Navratil has been employed at the company since 2001 and has served in a range of high-profile positions:

• 2001: Entered Nestle in Central America.
• 2013–2020: Oversaw Nestle’s Mexico beverage and coffee operations. 2020–2023: Leads global innovation and strategy on Nescafé and Starbucks brands.
• July 2024: Assumed CEO role at Nespresso.
• January 2025: Appointed to Nestle S.A. Board of Directors.
• September 2025: Became CEO of Nestle.

Nestle CEO Navratil has long been considered a long-term strategist and a master of the coffee and beverage portfolio that has long been one of Nestle’s most successful divisions. It is a move about stability rather than change since it was made clear that long-term strategies at the firm have not changed.

I completely endorse the company’s long-term vision and commitment to drive Nestle’s performance,” he further stated.

Nestle’s leadership is important because the firm is institutionally entrenched in international food and drinks markets. With a portfolio that exceeds 2,000 brands across coffee, milk chocolate, dairy, nutrition, and pet nutrition, it is a household brand across the globe.

Several such extremely popular brands include:

• Coffee & Beverage: Nescafé, Nespresso, Starbucks (licensed brands)
• Confectionery: Aero Mousse Bite
• Dairy & Nutrition: Carnation, nesqu
• Food: Maggi, St
• Cat Care: Purina

Any turbulence within the ultimate level of Nestle’s hierarchy can be felt throughout markets, ranging from European pension plans holding huge stock holdings to millions of consumers around the world.

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What Is Market Reaction On Shares in Nestle CEO Laurent Freixe Fired

Remarkably, financial markets shrugged off this shift in leadership. Shares in Nestle increased 0.13% to close at 75.49 Swiss francs upon news of his succession. Investors appear reassured by this rapid succession plan and Navratil’s background as a long-serving insider.

However, wider challenges lie ahead for Nestle CEO:

• Increased costs of raw materials (namely cocoa, coffee, and milk).
• Slowing sales in major markets such as Europe and China.
• More competition in private-label products in periods of inflation.
• What This Means for Corporate Governance

It appears that sacking prvious Nestle CEO Laurent Freixe betrays a surprising trend in global corporate governance. Large multinationals will no longer ignore personal wrongdoing at the very highest level even if it involves high-performers.

Nestle’s firm action conveys a strong message: ethical behavior is paramount. With relationships at work becoming increasingly blurred across professional boundaries, the case further highlights awareness about transparent leadership.

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Ahead lies Philipp Navratil’s difficult task to restore investors’ confidence and reflate growth as Nestle CEO. His first jobs will be:

• Intensifying beverage and coffee leadership, drawing on global leaders Nescafé and Nespresso.
• Leading technology-driven change to make supply chains smarter and meet customer demands better.
• pricing upward while balancing affordability for consumers in inflation-prone areas.
• Sustainable objectives, such as Nestle’s net-zero emissions goal by 2050.
• Recovery growth within Asia, and especially within China, where domestic consumption continues sluggish.

It has the dramatic sacking of Nestle CEO Laurent Freixe is one of the most sensational changes of power in Nestle’s history since it was founded 157 years ago. Even though his long stint and achievements will be remembered, his downfall shows how fast reputations can topple in corporate life.

Under Philipp Navratil’s leadership, Nestle is targeting stability, new efficiency, and long-term value creation. Investors and consumers will be watching in hopes that the largest food company in the world will be able to work out its current problems while keeping the faith of stakeholders. For the moment, at least, this is certain: Nestle has made a firm stand on governance and shown that even the loftiest office is not beyond the law.

Sources : Economic Times & NDTV World

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