VEVEY, Switzerland (Reuters) – Nestle chief executive Mark Schneider will adjust his transformation plan with multiple acquisitions, he said after the Swiss food group lowered its growth expectations on Thursday.
Nestle's Hirz yogurt was taken in a supermarket of Nestle headquarters in Vevey, Switzerland, February 13, 2020. REUTERS / Pierre Albouy
The company previously said it would take longer than expected to reach its organic growth target by 2020 despite having the highest annual growth in four years and improving profits.
Like rivals like Unilever, Nescafe coffee and maker KitKat Nestle have worked hard to streamline their diverse portfolio in line with changing consumer tastes and growing demand. Increase for environmentally friendly and healthier products and packaging.
Under Schneider's leadership, the group sought to focus on premium products in fast-growing market segments such as coffee and plant foods while retreating from slow-growing areas such as Chocolate and processed meat.
But the German-American CEO, who has made more than 50 transactions and assessed affecting 12% of the group's sales since taking responsibility in 2017, said the portfolio management was a bit heavy on decisions and a little bit on recent acquisitions.
This will change by 2020, he said, with small to medium transactions being the sweet spot.
A year ago, we soon returned to the goal of organic growth, but had to push back the target of organic growth for about a year or so.
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