The chairman of Swiss food giant Nestlé stepped down half a year ahead of schedule, and the senior management team has been intensively reshuffled recently.
On September 17, the board of directors of Nestlé Group announced that Paul Bulcke, chairman of Nestlé, had decided to step down, and Pablo Isla, the current vice chairman, would take over as chairman on October 1.
In the statement, Tinkay said that he was confident in Nestlé’s new leadership and that Nestlé was fully prepared for the future.This is the best time for him to step down and accelerate the leadership shift, allowing Ishra and Philip Navratil (the recent new CEO) to advance Nestlé’s strategy and lead the company in a new perspective.”
Ishra said Tinkai’s wisdom and dedication shaped the company and laid the foundation for the company to open a new chapter. In recognition of his long-standing dedication, the group appointed Tinkai as Honorary Chairman.
It is worth noting that the long-time chairman of the company, Thien Kae, resigned early this year. Nestlé previously announced in June this year that Thien Kae would resign next year. The board of directors of Nestlé decided to nominate the current vice chairman, Ismail, to run for the chairman of the company at the Annual Shareholders’ Meeting on 16 April 2026, in order to have time for a smooth transition and an orderly transfer. This means that the new chairman of the Nestlé Group will “start office” six months in advance.
ThinQe has served Nestlé for 50 years, including 14 years in the Executive Board, 9 years in the Chief Executive Officer and 9 years in the Chairman of the Board. According to foreign media reports, during ThinQe's time as Nestlé's CEO, Nestlé's share price rose by about 44%, but recent difficulties have also been influenced by its strategic decisions, which have led to the loss of market share in its core food business.
This management adjustment is the most drastic adjustment for the global consumer goods giant in decades, and it will also welcome a chairman from outside the company for the first time. The outside world is also looking forward to whether Isla can push Nestlé back to its historical growth.
Recent changes in the management of the Nestlé Group have been frequent.On September 1, local time, Nestlé Group announced the appointment of Philip Navratil as Nestlé’s chief executive officer, and Laurent Freixe was dismissed and the appointment came into effect immediately. Nestlé said that Nestlé’s departure was due to an undisclosed relationship between it and its direct subordinates, which violated Nestlé’s Code of Business Conduct.
At present, Nestlé faces severe challenges. According to foreign media reports, Nestlé’s sales growth has stagnated, and the company’s share price has dropped by more than 40 percent since 2022 and costs have surged. Debt levels have exceeded competitors such as Unilever. As competitors cut costs and even split up to improve performance, investors and analysts have urged Nestlé to streamline scale in a tough consumer market.
Investors and analysts say that the new Chairman of the Board has demonstrated strong leadership in Inditex, the parent company of the fashion brand Zara, which drives outstanding performance and is also expected to lead Nestlé back to growth.
Nestlé released its first half of 2025 results on July 24th. Total sales of 442,28 billion Swiss francs in the first half decreased by 1.8 percent, and organic growth (excluding acquisitions, departure, exchange rates) by 2.9 percent, higher than expected. Net profit of 506,6 billion Swiss francs in the first half, up 10.3 percent, compared to the same period. Foucault, CEO at the time, said in a statement to the Financial Times that he was “satisfied” with the extensive price hikes implemented in the first half of this year, but said the company was still considering whether further action was needed.
The organic growth rate of Nestlé Greater China's performance in the first half of the year was-4.2%, the actual internal growth rate was-1.5%, and the pricing contribution rate was-2.7%. The financial report pointed out that in Greater China, sales declined in the second quarter due to the adjustment of the business model and the shift to stimulating consumer demand.
In recent years, the Nestlé Group has achieved business growth by expanding its distribution channels, but this model is being challenged by weak consumption and a tightened currency environment. In order to sustainable growth, Nestlé is taking steps to improve its performance in the Greater China region, including leadership changes. It may take a year to regain sustainable growth, which will put pressure on growth over the next year. In addition, the vitamin, mineral and supplement business will focus on high-end brands and launch strategic evaluations of mainstream and value-based brands.