Nestlé announces reorganisation of its infant nutrition business

Nestlé’s infant nutrition business will change from the globally managed Nestlé nutrition to a regionally managed business to boost growth in the category.

As of January 2018, a strategic business unit will be created to manage core global functions including science-based innovation, quality management, compliance, and global manufacturing capacity. The change does not apply to other Nestlé businesses.

A nutrition business head will be appointed for each of Nestlé’s three zones, to implement the global strategy in local markets. They will have operational and financial responsibility, reporting to the respective zone CEO.

Nestlé said that the new organisation will allow its nutrition business to deliver accelerated organic growth and realise further efficiency gains.

In a statement, the company said: “The more agile and efficient structure will enable Nestlé to respond faster to rapidly changing local consumer preferences, evolving regulation, and customer and channel demand for tailor-made solutions.”

The move is part of Nestlé’s strategic model for growth which was announced in June and consists of spending on more profitable food and beverage categories such as coffee, pet care, infant nutrition and bottled water. 

Nestlé nutrition was created in 2006 and has strengthened Nestlé’s leadership in infant nutrition following the acquisitions of Gerber and Wyeth.

Executive board changes 

Nestlé has also announced changes to its executive board today with executive vice president and chief technology officer Stefan Catsicas leaving the company to pursue entrepreneurial and venture capital activities outside of Nestlé.

He will leave at the end of the year but maintain a strong relationship with the business in the coming years through an advisory role in science and technology areas related to the group’s priorities.

Nestlé has appointed Stefan Palzer as executive vice president and chief technology officer, effective 1 January 2018.

Palzer joined Nestlé in 2000 and in 2013 took over the role of global research and development manager in the beverage strategic business unit. He has been head of the Nestlé Research Center since 2016.

Nestlé nutrition deputy executive vice president Heiko Schipper has also decided to pursue other interests outside of Nestlé, leaving the company at the end of the year.

He was appointed global business head of infant nutrition in 2013 and deputy executive vice president in charge of Nestlé nutrition in 2014. Under his leadership, Nestlé said that its nutrition unit has achieved leadership in the important China market by fully leveraging the newly acquired Wyeth Nutrition brands and the Nestlé brand portfolio.

Heiko Schipper’s position on the company’s executive board will not be replaced, following the change in the organisation of the infant nutrition business.