Nestle S.A.

A Russian logistics business has reportedly asked the country's government to put five Nestlé subsidiaries under the temporary administration of the state. According to Russian business daily Kommersant, KM Logistics has contacted the Kremlin to request the measure, citing Nestlé not expanding its production capacity in Russia, where it has six factories, and not exporting products made in Russia. A Nestlé spokesperson told Just Food the Russian government has not contacted the Swiss giant about the request, and that the world's largest food maker continues to operate its offices and factories in Russia, meets regulatory requirements and fulfils its obligations. The report follows the Kremlin's 2023 seizure of Danone's Russian assets under temporary management of government property agency Rosimushchestvo, and the seizure of Carlsberg's stake in Russia's Baltika Breweries the same year.

European stock markets closed with their biggest decline in more than two weeks on Thursday, with the STOXX 600 index falling 1.18% to close at 639.27 points, pressured by disappointing earnings, hawkish remarks from the European Central Bank, and a surge in crude oil prices. France's CAC-40 dropped 1.64% to close at 8,299.09 points, Germany's DAX fell 1.56% to 24,763.12 points, and London's FTSE 100 declined 0.73% to 10,639.17 points. Although the ECB held interest rates steady, comments from President Christine Lagarde led investors to see a chance of a rate hike in September. Meanwhile, Brent crude futures surged to 100 US dollars per barrel for the first time since May after Houthi forces attacked a Saudi oil tanker in the Red Sea, pushing energy stocks up 1.54%. However, food and beverage stocks tumbled 4.1%, with Nestlé plunging nearly 8%, its biggest drop since 1989, after announcing the sale of some of its water and premium beverage businesses to Platinum Equity. Technology stocks fell 2.9%, led by STMicroelectronics which slumped 17.7% after forecasting third-quarter revenue below expectations, and BE Semiconductor which dropped 7.3% after reporting second-quarter results. In contrast, Soitec surged nearly 22% after revenue beat estimates. TotalEnergies rose 2.5% on its strongest quarterly results in nearly three years, and easyJet gained 2.7% despite a 70% drop in third-quarter profit.

Nestlé has decided to close a confectionery plant in north eastern Hungary, citing weaker demand for seasonal chocolate products across several well known brands. The planned shutdown and potential sale of the facility have prompted investors to reassess the company's capacity planning, cost base, and product mix. Nestlé's stock has recently gained momentum, with a 90-day share price return of 13.52% and a one-year total shareholder return of 15.63%. According to a widely followed valuation narrative on Simply Wall St, the stock is 6.1% undervalued, with a fair value estimate of CHF91.08 compared to the last close of CHF85.55. The investment thesis centers on Nestlé's transformation toward higher-value nutrition categories, including Health Science, GLP-1 Nutrition, Pet Care, Premium Coffee, and Emerging Markets, under the operational leadership of CEO Laurent Freixe.

Nestlé plans to close its confectionery factory in Diósgyőr, Hungary, by the end of the year, citing a decline in demand for seasonal chocolate products. The site, which opened in 1962 and joined Nestlé in 1991, produces hollow figures for the Smarties, KitKat, and Milky Bar brands and exports to more than 20 countries. It contributes less than 3% of Nestlé's revenue in Hungary and under 1% of its domestic manufacturing volume. The company has begun talks to sell the facility to an investor who wishes to continue confectionery production, aiming to transfer as many employees as possible to the new owner. Production of the hollow chocolate products will move to a co-manufacturer in the UK.

Nestle says consumers globally are shunning mid-sized pack formats as inflation pressures household budgets, with purchasing polarizing toward either smaller portions or mega-sized value packs. Marketing and sales boss David Rennie said there isn't a market where consumers aren't feeling cash-constrained, and that the middle gets squeezed in tough times. In the U.S., Jeff Hamilton, CEO of Nestle's Americas business, noted a pronounced strain on personal spending over recent months and said the company is focused on increasing sales volumes rather than raising prices. Nestle is adapting its portfolio, pricing, and pack sizes to cater to affordability-focused shoppers, while its coffee business adjusts prices based on volatile commodity costs and offers lower-priced products like instant coffee.

The FAIRR investor network reports a widening credibility gap in how the world's biggest food companies are implementing regenerative agriculture plans. Quantified regenerative agriculture targets have fallen from 35% of assessed companies in 2023 to 28%, and no company has set a pesticide reduction target despite more than half identifying reduced agrochemical inputs as a goal. Only Conagra Brands, Danone, Nestlé, and Sysco measure herbicide use in their programmes. While the share of companies measuring regenerative agriculture outcomes rose from 16% in 2023 to 54% in 2026, most measurement remains at the project level rather than company-wide, making it difficult for investors to assess scale and impact.

Former Nestle chief executive Laurent Freixe is seeking to recover a bonus and unvested shares that were taken from him after his September dismissal over an undisclosed relationship with a subordinate. Freixe, 64, is in pre-litigation settlement talks with the Swiss food company where he worked for 39 years, arguing his dismissal unfairly harmed his reputation and earning potential. He wants his pro-rata bonus for the months he worked in 2025 paid and the return of three years of unvested shares that were forfeited upon his termination. His lawyer said he was removed without being heard and stripped of compensation he had legitimately earned. Freixe was removed after only one year as CEO for failing to disclose the relationship during two investigations, and Nestle said at the time he would receive no severance package due to code of conduct violations.