Nestlé Appoints Nespresso Boss Philipp Navratil as CEO After Laurent Freixe’s Shock Exit Over Workplace Affair

Nestle SA has appointed Philipp Navratil, the executive behind its successful Nespresso business, as the company’s new Chief Executive Officer after ousting Laurent Freixe over an undisclosed workplace relationship.

The move marks another leadership shake-up at the world’s largest food group and comes at a time of mounting investor unease.

Leadership Shake-Up at the Swiss Food Giant
Nestle announced late Monday that Freixe was dismissed after an internal probe confirmed he had an undisclosed romantic relationship with a direct subordinate, a violation of the company’s strict code of conduct.

“This was a necessary decision,” Chairman Paul Bulcke said in the statement. “Nestlé’s values and governance are strong foundations of our company. I thank Laurent for his years of service.”

The company confirmed that Freixe will not receive an exit package.

A Sensitive Moment for Nestlé
Freixe’s departure deepens instability at Nestlé’s top ranks. He had only taken charge last year after the surprise dismissal of Mark Schneider, whose nearly eight-year tenure ended amid investor frustration over sluggish growth.

“This comes at a sensitive juncture, as Nestlé is already under the spotlight amid a negative news flow,” said Jean-Philippe Bertschy, analyst at Vontobel. “Nestlé should soon find calmer waters, as investors’ nerves have been tested for several months.”

Nestle Share Price 
Nestlé’s shares have fallen 17% since Freixe’s appointment, significantly underperforming rivals like Unilever Plc, which saw only a 5% decline in the same period.

The Probe and Corporate Culture
The matter came to light through Nestlé’s internal whistleblowing system, “speak up,” according to a person familiar with the situation. Initial investigations yielded no proof, but further concerns triggered a deeper probe overseen by Bulcke and led by independent director Pablo Isla, with the support of external counsel.

Nestlé has nominated Isla to succeed Bulcke as chairman next year, signalling continuity in governance.

Freixe now joins the list of high-profile consumer company chiefs forced out over workplace relationships. McDonald’s dismissed CEO Steve Easterbrook in 2019 under similar circumstances, and Kohl’s Corp. ousted Ashley Buchanan earlier this year after revelations of favouritism linked to a romantic partner.

Navratil Steps In
Navratil, a Nestlé veteran with more than two decades at the company, joined the executive board earlier this year. Before leading Nespresso, he was senior vice president of the Coffee Strategic Business Unit, overseeing global strategy for Nescafé and Nestlé’s partnership with Starbucks.

“I fully embrace the company’s strategic direction, as well as the action plan in place to drive Nestlé’s performance,” Navratil said in Monday’s statement.
Analysts see him as a long-term bet. “Navratil has the potential to accelerate growth and drive portfolio restructuring, including possible exits from slower-growth categories like cereals and water,” noted Duncan Fox of Bloomberg Intelligence. With Navratil not yet 50, his tenure could stretch a decade or more.

Challenges Ahead
Navratil inherits a company struggling with weak sales. Nestlé’s second-quarter sales volumes contracted 0.4%, reflecting sluggish consumer demand. Freixe’s initiatives, including a review of the vitamins business and a spin-off of the waters unit,  failed to restore investor trust.

Global trade tensions also loom large. Tariffs imposed by U.S. President Donald Trump have hit Nestlé’s coffee business especially hard. While 90% of its U.S. products are made domestically, Nespresso capsules, exclusively manufactured in Switzerland, now face a hefty 39% tariff.

The Road Forward
Navratil’s appointment comes with high expectations to stabilise operations, rebuild confidence, and chart a growth strategy that balances innovation with Nestlé’s traditional strengths.

(With Inputs From Bloomberg)

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