Nestle's New CEO Challenges Food Industry's Cost-Cutting Mantra
- Says rivals’ efficiency plans reduce their growth prospects
- Nestle’s new CEO to boost investment in fastest-growing units
Nestle CEO Focuses on Organic Growth and Cost Savings
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Nestle SA Chief Executive Officer Ulf Mark Schneider said many food and beverage companies are focused so much on cutting costs that they will undermine their growth prospects, challenging a recent mantra that’s been driven by companies such as Kraft Heinz Co. and Anheuser-Busch InBev NV.
“Many companies are focusing on radical cost-cutting to deliver higher profits in the short-term,” Schneider said Thursday in his first appearance at Nestle’s annual shareholder meeting in Lausanne. “This approach is not sustainable.”