Nestlé recently posted its plan for an 'accelerated long-term value creation strategy', a day after billionaire investor Daniel Loeb called out the food giant in an open letter published in the Financial Times on Sunday.
The letter criticised the company's slow sales growth, dropping stock price, and its lack of success in selling parts of the business that don't mesh with its 'nutrition health and wellness' strategy.
Loeb's letter stated that the company was an "insular, complacent and bureaucratic organization [that] is overly complex, lethargic, and misses too many trends."
Ensuring Long-Term Growth
In a post published on its website on 2 July, Nestlé underlined positive changes that have occurred in the company over the last year.
Chief amongst them was the change in CEO, with Mark Schneider taking the top spot in July of last year. Replacing Paul Bulcke, he was the first outsider to the company since 1922 to have held the position.
The post also lists efforts the company is making to ensure long-term growth. This includes the recently announced sales partnership with Starbucks, a new positioning on high-margin products, and Nestlé's $1 billion restructuring effort.
The statement also stressed that the company 'has delivered strong total shareholder return over the long term', amounting to +135% total shareholder return in CHF over the last decade.
© 2018 European Supermarket Magazine – your source for the latest retail news. Article by Matthieu Chassain. Click subscribe to sign up to ESM: European Supermarket Magazine.
