Introduction:Nestlé Group is set to launch a new organizational restructuring on January 1, 2025, simplifying its original five major regions into three key segments. Among these changes, the Greater China Region will be officially integrated into the Asia, Oceania & Africa (AOA) region, under the leadership of Remy Ejel, while Zhang Xiqiang will continue to serve as Chairman and CEO of the Greater China Region. This transformation not only relates to operational efficiency but also impacts the strategic layout of key brands including Nespresso. This article will take you in-depth into the background, objectives, and potential implications of this adjustment.
On October 17, Nestlé Group officially announced that starting January 1, 2025, it will implement a new organizational structure, reorganizing the original five geographic market regions into three: the Americas (AMS), Europe (EUR), and Asia, Oceania & Africa (AOA). The goal of this adjustment is to enhance decision-making efficiency and make global business management more streamlined and centralized.
According to the new plan, the previously separate Latin America (LATAM) and North America (NA) regions will be merged into the Americas (AMS) region, led by Steve Presley. He will be based at Nestlé’s headquarters in Vevey, Switzerland, to facilitate more direct collaboration with the group’s senior leadership. The Europe (EUR) region will maintain its current structure, with Guillaume Le Cunff continuing to lead without any significant personnel changes.
Notably, the Greater China Region (GCR) will no longer operate independently in this reorganization but will be incorporated into the Asia, Oceania & Africa (AOA) region, under unified leadership by Remy Ejel. Although Zhang Xiqiang, Chairman and CEO of the Greater China Region, will step down from the Group Executive Board, he will retain his original position and continue to oversee daily operations and strategy implementation in the region.
Nestlé stated that the core objective of this adjustment is to simplify the structure of the Group Executive Board, accelerating decision-making processes and improving overall operational efficiency through closer collaboration between the headquarters and regional units, thereby enabling more agile responses to rapid changes in the global market. Nestlé CEO Laurent Freixe noted: “A more streamlined organizational structure will help us drive consistent global market strategies and fully leverage the expertise of regional leaders.”
Additionally, Nestlé announced that future financial reporting will be divided into five main segments: the Americas (AMS), Asia & Africa (AOA), Europe (EUR), Nestlé Health Science, and the independently reported Nespresso business. It is worth noting that Nespresso, as Nestlé’s premium coffee brand, will retain its independent financial reporting status, underscoring its strategic importance within the group.
To maintain information transparency, Nestlé also stated that it will continue to voluntarily disclose quarterly sales performance for North America and Latin America within the Americas region, as well as for the Greater China Region within the Asia & Africa region, as needed. This will allow investors and the market to stay informed about the operational dynamics of key regions.
Market analysts generally believe that this adjustment means the Greater China Region management team will shift from reporting directly to the group to reporting to the Asia & Africa region, which may impact future resource allocation and strategic priorities. However, Nestlé emphasized that the Greater China Region management team remains stable, with all businesses steadily advancing according to established strategies, and there are no immediate plans for personnel or organizational changes.
Zhang Xiqiang, Chairman of the Greater China Region, further explained in an internal letter that this adjustment is not due to underperformance in the region but rather to ensure a smooth transition, reduce redundant reporting layers, and thereby enhance overall organizational efficiency. He also specifically mentioned that the group has confirmed the 2025 Global Board Meeting will be held in China, reflecting not only significant emphasis on the Chinese market but also trust and recognition of the Greater China Region team.
On the same day, Nestlé also released its financial performance for the first nine months of 2024. Data shows the group’s total sales amounted to 67.1 billion Swiss francs, a 2.4% decline compared to the same period last year. Among these, sales in the Greater China Region were 3.55 billion Swiss francs, also down 2% year-on-year. These figures reflect the ongoing challenges in the global consumer market, further highlighting the timeliness and necessity of this organizational adjustment.
Overall, Nestlé’s organizational restructuring this time is not just a redivision of geographic regions but also a deep optimization of its global operating model. Going forward, how to achieve balance across regions, continuously drive innovation and market expansion will be key for Nestlé in responding to evolving consumer trends.
The above content is compiled by CoffeeHunters, a coffee news website.
