Daniel Steck on RTS 19h30

Nestlé at a strategic crossroads

The food giant Nestlé is going through a period of deep strategic questioning. Following the back-to-back departures of its CEO and Chairman of the Board, the multinational must redefine its priorities in order to reassure shareholders, employees and consumers.

During RTS’s 19h30 news programme, Daniel Steck, Fund Manager and Analyst at Piguet Galland, emphasised that the issue of underperforming divisions — notably frozen foods in the US, vitamins, and bottled water — remains central to the company’s future:

“Today, shareholders are really expecting a clear signal from Nestlé regarding the water division, which has been the subject of numerous controversies in recent years. A strong move from Nestlé would be to divest from this type of activity.”

Beyond reorganising its portfolio, Nestlé’s commercial strategy also deserves to be revisited. As Daniel Steck pointed out:

“In the past, Nestlé has perhaps overemphasised boosting profitability through price increases, while neglecting its brands somewhat and not being sufficiently active in terms of innovation.”

At a time when consumers are increasingly attentive to the added value of the products they purchase, the challenge for Nestlé will be to strike a new balance between profitability, brand image and sustainable innovation.

Full intervention by Daniel Steck on RTS 19h30 (French only)