Nestlé's new CEO, Philipp Navratil, has announced a strategic restructuring to focus the food giant on four key areas: coffee, pet care, nutrition, and snacks. As part of this move, the company will sell its stake in the ice cream business and seek partners for a partial exit from the premium bottled water market, a sector recently affected by controversies.
The logistics behind dismantling a global portfolio 📊
Disconnecting businesses of this magnitude requires highly precise supply chain management and data systems. Nestlé will need to segregate operations, from production to distribution, for units that will soon be independent. This technological process, which includes separating customer and supplier databases, is complex and its execution will define the effectiveness of the transition to its new operating model.
Melted ice creams and waters seeking new channels 💧
It seems Nestlé's strategy is to cool its portfolio, literally, by exiting the ice cream business. Meanwhile, its premium waters are navigating toward an uncertain future with new partners, perhaps so that the next time there's a problem with a spring, the responsibility is more shared. A move that undoubtedly leaves more than one investor wondering if their portfolio should also be kept in a cool and dry place.