SWITZERLAND- The Nestlé Board of Directors has approved the creation of new geographic Zones to strengthen the company’s market-led approach and further its ability to win in a rapidly changing environment.
According to the Swiss-based food conglomerate, the architecture, effective January 1, 2022, also underscores the company’s deep commitment to succeeding in all parts of the world.
As from the beginning of next year, the company will be organized into five Zones as follows: North America (NA), Latin America (LATAM), Asia, Oceania and Africa (AOA), Europe (EUR), and Greater China (GC).
Comprised of the United States and Canada, Zone North America will be the group’s largest zone with annual sales that amount to CHF 24.7 billion (US$26.62 billion).
Newly created Latin America (LATAM) zone will be comprised of Brazil, Mexico, and the Caribbean and represents CHF 9.2 billion in annual sales.
Nestlé’s Asia, Oceania, and Africa (AOA) will now include the Middle East and North Africa (MENA) Region, representing CHF 17.5 billion in annual sales.
Greater China (GC), one of the fastest-moving food and beverage markets, and Europe with annual sales of CHF 17.7 billion close the company’s 5 geographical zones.
Mark Schneider, Nestlé S.A. CEO, said: “With the new Zone structure, we will significantly sharpen our geographic focus to drive sustained profitable growth everywhere we operate.”
“This move will bring us closer to consumers and customers, unlock new business opportunities and enable us to be even more agile in a fast-moving consumer environment.”
As a result of the new Zone structure, the company announced a number of new changes to the Executive Board, effective January 1, 2022.
Chris Johnson, Executive Vice President and CEO Zone Asia, Oceania and sub-Saharan Africa, will retire from the Executive Board on December 31, 2021 and will be replaced by Remy Ejel, current Market Head Middle East North Africa.
Steve Presley, current Chairman, and CEO Nestlé USA, will join the Executive Board as Executive Vice President and CEO Zone North America.
David Zhang, the current CEO of Totole, will on the other hand succeed Rashid Qureshi as the head of the Greater China region, and will subsequently join the executive board as Executive Vice President and CEO Zone Greater China.
Laurent Freixe will lead the newly established LATAM zone as Executive Vice President and CEO Zone LATAM while Marco Settembri will lead Zone Europe as Executive Vice President and CEO.
Nestlé says it will report the sales and growth numbers of the new Zone structure for the first time on April 21, 2022.
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