Industry leadership shifts summary
- Major food and beverage companies experienced unusually high CEO turnover over the past 12 months
- Several high-profile exits were triggered by scandals or misconduct
- Other leadership changes stemmed from long-planned retirements and tenure endings
- Investor confidence faces pressure as companies navigate disruptive transitions
- New CEOs must balance continuity with strategic change amid industry headwinds
Nestlé, Unilever, Barry Callebaut, Coca-Cola, Hershey, Kraft Heinz, Suntory... a veritable who’s who of the biggest names in food and drink.
What else do they have in common?
They’ve all undergone high-profile C-suite changes over the past 12 months. Or, more specifically, they’ve all appointed a new CEO.
Scandals, dismissals and resignations
And, while some are merely the result of successful individuals deciding the time is right to step-down – Michele Buck at Hershey and James Quincey at Coca-Cola – controversy has been a major catalyst for change.
The most notable being the stunning fall from grace of now-former CEO Laurent Freixe. The disgraced exec was sacked following, “an undisclosed romantic relationship with a direct subordinate”, after just 12 months in the job.
And Freixe’s actions didn’t only lead to his own demise, he took Nestlé chairman Paul Bulcke down with him, as the latter was forced out by Nestlé investors who held him partially responsible for the incident.
But that wasn’t the only scandal to shock the industry that month, or even that week... just three days after Freixe’s exit, drinks giant Suntory’s CEO, Takeshi Niinami, was ousted over allegations of drug use - it was quite the week for the industry!
Then there was the abrupt exit of supermarket chain Kroger’s CEO, Rodney McMullen, which left everything to the imagination. In fact, we’re still trying to get to the bottom of what the company meant when it said an investigation found McMullen’s personal conduct was “inconsistent” with the company’s ethics policies.
There are also question marks surrounding Hein Schumacher’s exit from Unilever after just 18 months. The only clue behind the exit being chairman Ian Meakins’ words that there is much further to go in delivering best-in-class results, implying Schumacher wasn’t hitting the mark – though this would purely be a results-based issue, rather than anything more problematic.
Finally, there were the scandals we only heard about after the event.
Barry Callebaut’s CEO stepped down back in January, and all was claimed to be well, with chairman Patrick De Maeseneire thanking outgoing Peter Feld for “his immense work and leadership” and wishing him “all the best for the future.”
However the truth, as it has a tendency to do, quickly emerged, with sources revealing strategy disagreements at the highest level were the real reason behind the unexpected exit.
So what’s going on in the boardrooms of food and beverage’s biggest names?
And – scandal aside – is the rate of change unusual?
All change at the top
The rate of change is “certainly higher than normal,” says Peter Galbo, managing director of US Consumer Staples Equity Research at Bank of America. Though he puts the majority of these changes down to “a wave of retirements” following decades-long tenure.
What’s more, Galbo notes this trend is being observed across the entire packaged food and beverage industry.
In other words, yes there are a lot of changes at the top, but in many cases it’s coincidence, rather than something more sinister at play, and no one sector is being adversely affected.
Although we may dispute this claim if we see any more exits like those seen at Nestlé, Suntory, Kroger, and Barry Callebaut.
Risk to investor confidence
One of the biggest challenges companies face when changing leadership is maintaining investor confidence, especially if the outgoing CEO left under less than ideal circumstances.
Leadership represents strategy, predictability, and long-term value creation. When that figurehead suddenly disappears, questions inevitably follow – What does this mean for performance? For culture? For the roadmap investors were sold six months ago?
Nestlé, for one, is grappling with precisely this challenge, especially now, as the infant formula crisis intensifies.
Analysts have warned that the company now faces a dual task – stabilising the organisation internally while reassuring increasingly wary investors that it still has a firm grip on its long-term objectives. Rebuilding that trust takes time, clear communication, and crucially, demonstrable results.
And Nestlé is far from alone. Any company navigating a high-profile executive shake-up must strike a delicate balance between acknowledging the disruption and projecting confidence in the future.
But, Bank of America’s Galbo argues it could also be a “reason for optimism”.
Reasons to be optimistic
Appointing a new CEO is just the first step – proving that the transition won’t derail momentum is the harder part.
In an industry already wrestling with inflationary pressures, shifting consumer behaviours, and growing ESG scrutiny, incoming leaders need to hit the ground running.
Moreover, there doesn’t necessarily need to be a major strategy shift – if it’s worked over the past five years, then it’s more about “continuity”, says Galbo.
Having said that, if change is needed then, Galbo explains “a fresh set of eyes” could help to re-evaluate a company’s portfolio and identify what needs to stay, what needs to go, and if any new products or sectors are needed to futureproof the business.
Turning point for food and beverage
So what does this all amount to? A cluster of scandals, a wave of retirements, and a handful of strategic disagreements might look like chaos from the outside, but it doesn’t necessarily spell crisis for the food and beverage industry.
Leadership churn, when planned, can also be a sign that boards are actively responding to industry pressures rather than drifting complacently.
And it’s impossible to know which changes will prove to be a success in the future.
Unlike national leaders, CEOs are rarely judged for their first 100 days, sometimes not even for their first year. Strategy resets take time. Cultural repair takes longer. And earning back the confidence of investors, employees, and consumers can take longer still.
What we do know is that the decisions made now will shape the direction of some of the world’s most influential food and beverage businesses for years to come.
These new leaders are inheriting companies facing unprecedented challenges – cost volatility, geopolitical uncertainty, shifting consumer expectations, and the increasingly unavoidable need to deliver on sustainability promises.
Those who combine continuity with clear, forward-looking action have a chance to strengthen their organisations for the next decade. Those who cannot may find themselves the next ones stepping down.
