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Nestle Abandons Its Nestle Model Sales Target

Nestle modelIn his first public appearance, Nestle’s new CEO Ulf Mark Schneider replaced the Nestle Model with a more ambiguous goal of “mid-single-digit organic growth and significant structural cost savings by 2020,” which he plans to reach by combining cost cutting with portfolio management. According to Schneider, the company felt the move was wise considering the current economic environment.

“Nestle, the world’s largest packaged food group, reported 2016 sales of 89.5 billion Swiss francs ($89.3 billion), up 3.2% on an organic basis. That was below the 4.2% growth seen in 2015 and marks the fourth time Nestle has missed its model for 5-6% growth.”

Read the full story at Fortune.