Nestle is replacing Chief Executive Mark Schneider with long-serving executive Laurent Freixe, the company said Thursday.

Schneider has decided to relinquish his roles as CEO and member of the Board of Directors after eight years leading the world's largest packaged food company.

Nestle has struggled recently, last month cutting its full year sales outlook, saying it had had to slow its price hikes as cash-strapped customers become more price conscious.

Its shares have fallen 8% in 2024, underperforming rivals like Unilever which have gained 29%.

Freixe joined Nestle in 1986, and has been on the Swiss company's executive board for 16 years.

In his most recent role he was CEO of Zone Americas.

The change is effective from Sept. 1, Nestle said.