Nestlé has dismissed Chief Executive Laurent Freixe following the outcome of an internal investigation, which revealed he had not disclosed a relationship with a subordinate. The company confirmed that Philipp Navratil, a long-serving executive, will assume the role of CEO.
The board of directors ordered an inquiry into Freixe’s conduct after concerns were raised internally, reported India Today. According to the company, the investigation, overseen by Chairman Paul Bulcke and lead independent director Pablo Isla with the assistance of external legal advisers, concluded that Freixe had engaged in a romantic relationship with a direct subordinate. Nestlé said the omission constituted a clear breach of its code of business conduct.
“This was a necessary decision,” Chairman Paul Bulcke said in a statement, stressing that Nestlé’s governance and ethical standards remain non-negotiable. “Nestlé’s values and governance are strong foundations of our company,” he added.
Philipp Navratil Steps Into the Top Role
Philipp Navratil, who has spent over two decades with Nestlé, has been named as Freixe’s successor. He began his journey at the company in 2001 as an internal auditor and went on to hold a variety of positions in Central America before moving into the global coffee business. In 2020, he joined Nestlé’s Coffee Strategic Business Unit and, four years later, was appointed CEO of the Nespresso division. His steady rise through the company and experience across multiple regions positioned him as a natural choice for the top post.
Industry analysts note that Navratil’s appointment signals continuity at a time when Nestlé faces headwinds from rising input costs and global trade pressures. His leadership of the Nespresso brand, known for premium positioning in the competitive coffee segment, is seen as valuable experience in navigating both growth and cost challenges.
Nestlé Faces Ongoing Challenges
The leadership change comes as Nestlé continues to grapple with mounting commodity costs and tariffs. The company disclosed in July that price increases across key product categories had helped to offset higher expenses for coffee and cocoa. Even so, maintaining profitability amid persistent inflationary pressures and shifting consumer demand remains a challenge.
Headquartered in Vevey, Switzerland, Nestlé is one of the world’s largest food and beverage companies, with a portfolio spanning coffee, dairy, nutrition, and confectionery.
The coming months will test Navratil’s ability to stabilise operations, reassure investors, and steer Nestlé through a demanding external environment while upholding the company’s long-established values.
