VEVEY, SWITZERLAND — Nestle S.A. plans to reorganize its infant nutrition business to compete more effectively in the high-growth category. The company will move infant nutrition from its globally managed Nestle Nutrition unit to a regionally managed business, effective Jan. 1, 2018. The change is expected to result in a more nimble and efficient structure, allowing Nestle to react more quickly to changing consumer preferences, regulations and demand for custom solutions for specific customers and channels, the company said.
A dedicated strategic business unit will be established to manage core global functions, including science-based innovation, quality management, compliance and global manufacturing capacity. A nutrition business head will be appointed for each of Nestle’s three zones to implement the global strategy in local markets. These individuals will have operational and financial responsibility, reporting to the respective zone chief executive officer.
“The new organization will allow Nestle’s infant nutrition business to deliver accelerated organic growth and realize further efficiency gains,” the company said.
Additionally, Nestle announced changes to its executive board. Stefan Palzer, currently head of the Nestle Research Center, has been named executive vice-president and chief technology officer. He will replace Stefan Catsicas, who is leaving the company to pursue outside interests. Mr. Catsicas will remain in an advisory role with Nestle in science and technology related to the group’s priorities.Heiko Schipper, deputy executive vice-president of Nestle Nutrition, has decided to leave the company in pursuit of outside opportunities. His position on the company’s executive board will not be replaced.