Nestlé To the barricades!
“Nestlé’s insular, complacent, and bureaucratic organization is overly complex, lethargic, and misses too many trends,” says Dan Loeb, a guy who actually likes the business. Loeb, you will recall, bought somewhere in the region of 12% of the business through his hedge fund, Third Point, about a year ago, and has since been making a damned nuisance of himself as activist shareholders are wont to do. He’s stepped it up on the anniversary of his acquisition, however, in a letter urging the board to renounce incrementalism, to rapidly spin off subsidiary non-core businesses like those in ice cream, frozen foods and confectionery, and to disentangle its arcane management structure, organizing the business into three divisions: beverages, nutrition and grocery. Ominously for management, the letter was accompanied by a 34-slide PowerPoint presentation, and a website.
Comment: If he goes for the hashtag, everyone under your desks.