Behind the Money The meltdown at Nestlé
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Oct 15, 2025 Madeleine Speed, a consumer industries reporter at the Financial Times, delves into Nestlé's recent turmoil. She discusses the company's significant underperformance and governance issues following a scandal involving the former CEO. Madeleine explains how the broader consumer goods sector is facing pressure from shareholders, and outlines the potential strategies of new leadership under CEO Philip Navratil. Key topics include possible asset sales, governance reform, and the future direction of this global powerhouse.
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Brand Pride Became Strategic Rigidity
- Nestlé built a global identity around feeding and nourishing the world, which shaped its pride and strategy.
- That proud, expansive model is now questioned as its CEO change and performance issues expose vulnerabilities.
Consumer Pullback Exposed Conglomerate Limits
- Post-COVID and amid cost-of-living pressures, consumers are trading down and buying fewer branded goods.
- That shift has squeezed margins across big consumer conglomerates and exposed the limits of scale.
Scale Is No Longer An Unquestioned Superpower
- Investors now question whether sprawling conglomerates can sustain growth across diverse categories.
- Many peers have slimmed portfolios, but Nestlé resisted, betting on scale as a ‘‘superpower.’"