Nestlé abruptly dismissed CEO Laurent Freixe on Monday after a year in the top role, citing an undisclosed romantic relationship with a direct subordinate.
The departure follows an investigation that found the relationship breached the company’s code of conduct, Nestlé said. The Lean Cuisine and Hot Pockets manufacturer appointed Philipp Navratil, the head of its Nespresso coffee brand, to replace Freixe as chief executive.
“This was a necessary decision,” Paul Bulcke, Nestlé’s chairman, said in a statement. “Nestlé's values and governance are strong foundations of our company.”
Navratil’s appointment marks the third CEO at the Switzerland-based food giant in a little more than a year. Freixe was named to the position last year to replace Mark Schneider as Nestlé looked to boost growth and sharpen its focus.
During Freixe’s tenure, the food and beverage company separated its waters and premium beverages unit, the latter of which includes brands such as Perrier and Sanpellegrino. It is currently reviewing its struggling vitamins, minerals and supplements division for underperforming brands it might decide to sell.
Freixe also prioritized increasing advertising and marketing to grow sales and share of some of its biggest brands. The CPG giant made increasingly fewer and bigger bets that had the greatest potential for success.
There are signs the strategy was paying off. Nestlé posted organic growth of 2.9% for the first half of 2025. Nestlé’s Zone Americas business, which accounts for nearly 40% of sales, rose 2.1% during the period.
Navratil began his career with Nestlé in 2001 as an internal auditor. He has held several roles for Nestlé, including overseeing its coffee and beverage business in Mexico starting in 2013. Navratil took over Nespresso in July 2024, where “he has accelerated growth and built strong momentum,” according to Nestlé.
Navratil will have a lot on his plate in his new role.
Nestlé is not only aiming to improve its own business, but the company is also dealing with consumer spending declines due to inflation and global uncertainty. At the same time, some of Nestlé’s brands are being impacted by higher coffee and cocoa costs due partly to tariffs put in place by President Donald Trump.
Navratil is unlikely to deviate from Freixe’s strategy with so many headwinds facing the company and an ongoing desire within the firm to improve its business.
“I fully embrace the company's strategic direction, as well as the action plan in place to drive Nestlé's performance,” Navratil said. “I look forward to working closely with the entire leadership of the company ... to accelerate execution and to drive the value creation plan with intensity.”
