Nestlé’ changes infant nutrition business structure, appoints R&D head

SWITZERLAND – The world’s leading food, nutrition and health company, Nestlé has decided to change the management of its infant nutrition business unit ‘to enhance further the company’s ability to win in this high-growth category’ from January 2018.

The company plans to move the infant nutrition unit from the globally managed Nestlé Nutrition to a regionally managed business, as new CEO Mark Schneider seeks to change the structure of the organisation, and key roles, following recent pressure from some shareholders.

According to the company, the new organization will allow its vital infant nutrition business to deliver accelerated organic growth and realize further efficiency gains, with a ‘more agile and efficient structure’,

The changes will enable the company to ‘respond faster to rapidly changing local consumer preferences, evolving regulation, and customer and channel demand for tailor-made solutions.’

This change to the infant nutrition business will not apply to other businesses of the company.

Further, the company plans to create a dedicated Strategic Business Unit (SBU) to retain the strengths of its globally aligned nutrition strategy.

The new SBU will manage core global functions including science-based innovation, quality management, compliance, and global manufacturing capacity.

The company will appoint a Nutrition Business Head to lead each of Nestlé’s three zones, to implement the global strategy in local markets.

They will report to the respective Zone CEO’s, and have operational and financial responsibility.

A number of changes have also been announced in its Executive Board, with Heiko Schipper, Deputy Executive Vice President in charge of Nestlé Nutrition leaving the company from December 31, 2017.

He will not be replaced, following the changes in the infant nutrition business.

Meanwhile, Stefan Catsicas, Executive Vice President and Chief Technology Officer, will also leave the company after having led Nestlé’s Research capabilities from 2013.

Stefan Palzer, the current Head of the Nestlé Research Center from January 1, 2018, will replace him.

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