“U.S. Economic Woes Rattle Consumers, But Nestlé Gains Ground, CEO Says”

Nestlé CEO Laurent Freixe has acknowledged that American consumers are feeling the strain of an economic slowdown, a situation intensified by recent U.S. trade policies. In an interview with Swiss newspaper Neue Zuercher Zeitung, Freixe noted that the atmosphere of uncertainty is affecting consumer behavior, though Nestlé remains resilient in the face of these challenges.

Freixe highlighted that despite the slowdown and added pressure from tariffs introduced by the Trump administration on key U.S. trading partners, Nestlé has started to recover its market share in the U.S. He emphasized the company’s recent strong performance in the region, suggesting that its strategic positioning and brand strength are helping it outperform competitors.

According to Freixe, consumer confidence in the U.S. has been shaken by the broader economic climate. Nonetheless, he maintains an optimistic outlook for Nestlé’s future, citing recent gains as signs that the company is moving in the right direction despite macroeconomic headwinds.

In addition to discussing market performance, Freixe addressed speculation about Nestlé’s water business. He clarified that while a full sale is not on the table, the company is considering bringing in a co-investor to help expand that division without diverting resources from Nestlé’s core operations.

This strategy reflects a broader trend among global firms seeking partnerships to share investment risk while focusing on core business growth. Freixe suggested that a joint venture might be the most viable option to unlock the water business’s potential without compromising Nestlé’s financial agility.

Source: Reuters