Despite a slowdown in the U.S. economy, Swiss food giant Nestlé is making significant strides in recovering market share in the country, according to CEO Laurent Freixe. In an interview with Neue Zuercher Zeitung, Freixe discussed the company’s positive performance amidst challenging economic conditions.
US Economic Pressures and Consumer Sentiment
The U.S. economy has shown signs of weakening, with consumer confidence waning due to factors like rising tariffs imposed by the Trump administration on key trading partners. Freixe acknowledged the pressures on U.S. consumers but noted that Nestlé had been performing better than its competitors, regaining market share despite the economic headwinds. “The U.S. market is under pressure. There’s uncertainty, and consumers are feeling the economy slowing,” Freixe said. “But we’ve recently performed better than our competitors in the U.S. We’re regaining market share. We’re on the right track.”
Nestlé’s Strategy in the US Market
Freixe emphasized that Nestlé’s ability to regain market share in the U.S. was a testament to the company’s resilience and effective strategies. While many companies are struggling with the impact of tariffs, Nestlé has managed to stay competitive by continuing to meet consumer demand and strengthen its position in the market.
Future of Nestlé’s Water Business
In the interview, Freixe also addressed Nestlé’s water business, which has been the subject of speculation regarding a potential sale. While Nestlé is not planning to sell its water business, Freixe mentioned the possibility of selling a stake in it through a joint venture. “To unlock the full potential, we need a partner as a co-investor so that we don’t have to take the funds for expansion out of our core business,” he explained. A partnership would allow Nestlé to focus its resources on expanding its core business while still benefiting from the water division’s growth.
What’s Next for Nestlé?
With a clear strategy in place, Nestlé is well-positioned to continue its recovery in the U.S. market. The company’s ability to adapt to shifting consumer preferences and economic conditions will be key to sustaining its growth. While the economic environment remains uncertain, Nestlé’s market share recovery indicates that the company is resilient and adaptable in the face of challenges.
