A significant redistribution of executive authority is underway at Nestlé, signaling a potential strategic pivot for the global food and beverage conglomerate. The catalyst for this shift is the forthcoming retirement of Sanjay Bahadur, Head of Corporate Strategy, at the end of 2025 after forty years with the company. However, the true import for investors lies not in the departure itself, but in the consequential restructuring that sidelines the formal strategy chief role.
In a decisive move, the responsibility for mergers and acquisitions (M&A) will not be assigned to a new strategy executive. Instead, it will be integrated directly into the finance department. While Philip Mellor, the current Head of Legal M&A, will assume operational leadership of the team, he will not join the corporate executive board—a key difference from his predecessor. He will report directly to Chief Financial Officer Anna Manz.
This consolidation of control sends a powerful message to the market, placing Manz in command of capital allocation. The implications for Nestlé’s future direction are substantial:
* Expansion Takes a Back Seat to Efficiency: The threshold for approving costly acquisitions is likely to be raised significantly.
* A “Bolt-on” Acquisition Strategy: The focus is expected to shift away from risky mega-deals toward smaller, more strategic additions to the existing portfolio.
* A Leaner Command Structure: The top leadership tier is shrinking, promising shorter decision-making pathways within the financial domain.
Market Shrugs Off Sugar Controversy, Focuses on Structure
As these long-term management changes take shape, Nestlé faced separate criticism on Friday. The NGO Public Eye accused the company of using higher sugar levels in infant food products sold in African markets compared to those in Europe. Nestlé refuted these allegations, labeling them as misleading.
Should investors sell immediately? Or is it worth buying Nestle?
The market’s reaction was telling: investors largely disregarded the ESG-related claims, choosing instead to concentrate on the positive implications of the internal structural enhancements.
Technical Analysis: Has a Foundation Formed?
Nestlé’s shares appear to have moved past a challenging summer period. The stock is currently trading at 86.05 €, reflecting a negligible daily change of -0.05%. For technical analysts, the more critical metric is the cushion above the 50-day moving average. With a comfortable 3.50% buffer over the 83.14 € mark, bullish investors seem to be in control for now.
The equity has clearly distanced itself from its August 52-week low of 75.59 €, though it remains a considerable journey from the year’s high near 95 €. The current consolidation at this level indicates a patient, watchful stance among the investor base.
Conclusion and Forward Look
Although this executive reshuffle does not take official effect until January 1, 2026, the strategic reorientation begins immediately. The pressure is now on Anna Manz to deliver on the promise of greater efficiency. The next significant test will arrive on February 19, 2026, when Nestlé discloses its full-year results. Until then, a compelling question remains: Will the CFO leverage her consolidated authority to conduct a rigorous portfolio review?
Ad
Nestle Stock: Buy or Sell?! New Nestle Analysis from November 21 delivers the answer:
The latest Nestle figures speak for themselves: Urgent action needed for Nestle investors. Is it worth buying or should you sell? Find out what to do now in the current free analysis from November 21.
Nestle: Buy or sell? Read more here...
