(Yicai) Sept. 5 -- Nestlé is evolving its business strategy in China, pivoting to growth driven by consumer demand rather than distribution, according to the chief financial officer of the Swiss food giant. 

Despite a slight drop in first-half sales, Nestlé China, led by Chief Executive Kais Marzouki, is optimizing inventory and pricing to ensure channel health and product freshness, Anna Manz said at the Barclays 18th Global Consumer Staples Conference yesterday. The firm targets niche segments, such as hypoallergenic infant formula, which deliver robust growth while prioritizing rapid responses to meet diverse consumer needs, she noted.

In addition, Manz confirmed the exit of Nestlé's CEO Laurent Freixe, who was released after internal claims of improper favoritism and involvement in a romantic relationship with an employee. An initial internal investigation in May, overseen by the board, found no evidence to support such allegations, with Freixe denying the claims, but subsequent reports with new details triggered a broader external probe, which uncovered a breach of conduct, prompting the board to replace him, she said.

Philip Jucker, 49, succeeded Freixe. Jucker is a Nestlé veteran with over 20 years of experience leading the firm's international coffee business and Nespresso, bringing proven expertise from driving Starbucks' global expansion.

Manz also reaffirmed Freixe's "fewer, bigger, better" strategy, which focuses on driving 18 underperforming units, which account for 21 percent of Nestlé's income, and investment in high-growth businesses such as ready-to-drink coffee and pet therapeutics. Four subsidiaries, including Milo and Brazilian Asian biscuits, have gained market share, reducing their drag on the company's overall growth by over a third in six months, she said, noting that this strategic push will continue under Jucker.

Editor: Martin Kadiev