Nestle shares fall after CEOs surprise departure [Video]

Nestle shares fell Friday after the surprise departure of chief executive Mark Schneider, which followed slowing sales growth and bad headlines at the Swiss food group.

The company announced after markets closed Thursday that Schneider would step down on September 1 after almost eight years in charge and be replaced by Nestle’s Latin America chief, Laurent Freixe.

Nestle shares fell more than three percent in early deals on the Swiss stock exchange but pared down those losses later in the morning for a 1.5 percent drop.

In a conference call with investors on Friday, chairman Paul Bulcke acknowledged that the decision “may come as a surprise for many of you” but that it was “time … for a change” at the company.

He added that “different qualities” were needed.

Nestle, whose brands range from Nespresso coffee capsules to Purina dog food and Haagen-Dazs ice cream, lowered its sales growth outlook for 2024 last month as it slowed …