Analysis: Consumer goods firms cut CEO tenures short in push for growth

PUMA SE

17/12/2025 05:00

(Repeats Dec 16 item with no changes to text)

        * 
      CEO changes driven by sluggish growth, tariff uncertainty,
and
need to connect with younger shoppers
    

        * 
      Rapid consumer preference shifts prompt firms to realign
strategies
    

        * 
      Investors and boards want quicker turnarounds
    

  
    By Paolo Laudani and Helen Reid
       Dec 16 (Reuters) - Consumer goods firms are changing
CEOs as fast as sports teams change coaches as boards lose
patience with sluggish growth, U.S. tariff uncertainty and the
challenge of connecting with younger shoppers.
    Kraft Heinz  KHC.O  on Tuesday named industry veteran and
former Kellogg top boss Steve Cahillane as its new CEO, the
latest consumer goods giant to change leadership this year. 
    Kraft Heinz's reshuffle comes after Coca-Cola  KO.N ,
cosmetic retailer Coty  COTY.N  and yoga pants maker Lululemon
 LULU.O  all changed CEOs last week. They joined a long list of
consumer-facing companies making top-level changes this year,
including Knorr-manufacturer Unilever  ULVR.L  and Kit Kat-maker
Nestle  NESN.S .  
    "Chief executives have had to react to all the market
changes taking place and adapt," said Kim Pomoell, partner in
Heidrick & Struggles' consumer markets practice. "And there's
been impatience from boards, to some degree, in terms of not
hitting the targets fast enough and reacting to those changes."
    Global CEO turnover remains elevated, data from executive
search firm Russell Reynolds Associates show. 
    Up to the end of the third quarter of 2025, there were  176
incoming CEOs worldwide, a 9% year-on-year rise. 
    "High turnover is becoming a feature of modern governance,
reflecting directors’ resolve to maintain strategic alignment
amid ongoing disruption and uncertainty—and intensifying
investor activism," Russell Reynolds said in a report.
    Sportswear brand Puma  PUMG.DE , which in April replaced
Arne Freundt, whom it appointed in late 2022, due to what the
company called "differing views on strategy execution," or
Diageo  DGE.L  where CEO Debra Crew, who  struggled to win over
investors, was replaced in July after a two-year tenure, are
some examples of this fast-paced approach.
    While some changes are attributed to individual executives'
performances, broader economic challenges including U.S.
President Donald Trump's tariffs and supply chain turbulence,
such as the Suez Canal disruption are also factors.
    The S&P 500 consumer staples sector index  .SPLRCS  is up
just 3.3% since the start of this year, significantly lagging
the 15.9% gain made by the S&P 500  .SPX  overall.
    U.S. tariffs are expected to drive up consumer prices across
global markets, eroding spending power and forcing firms to
reassess strategies as growth eludes some consumer-facing firms.
    "CEO changes at firms like Coty and Lululemon are responses
to weak share prices and slowing growth," said Zacks' stock
strategist Andrew Rocco.   
     
    NEED TO CONNECT WITH YOUNGER SHOPPERS
    Some CEO exits stem from company-specific issues such as the
departure of Nestle  NESN.S  executive Laurent Freixe in
September following an investigation into an undisclosed
romantic relationship with an employee.
    At Coca-Cola, meanwhile, Henrique Braun, who takes over as
CEO from James Quincey, who will become executive chairman,
faces the  task of ensuring the brand can navigate consumer
shifts away from sugary beverages and increased scrutiny from
regulatory bodies such as the Make America Healthy Again
commission, analysts say.
    Lululemon faces a different challenge - engaging with
younger consumers. Rival brands, such as Alo Yoga and Vuori, are
winning them over with trendy styles, celebrity endorsements and
competitive pricing.
    The Canadian sportswear brand's established millennial
customers are now more price-conscious in the face of higher
living costs, according to Brian Mulberry, senior client
portfolio manager at Zacks.
    "Affordability is staring them in the face and a new outfit
at Lulu could be a month's groceries," he adds.
     
    QUICKER TURNAROUNDS    
    The rapid shifts in consumer preferences, particularly among
the millennial and Gen Z customers, are prompting companies to
realign their strategies to account for less predictable
customer preferences. 
    "It's a difficult group to pin down," said Mulberry. "Firms
need sharper innovation and better traction with younger
consumers."
    Boards are also demanding quicker turnarounds in the face of
intensifying scrutiny from investors and the media.
    Randall Peterson, professor of organizational behavior at
London Business School, says stakeholders are not as patient as
they used to be.
    Greg Halter, director of research at Carnegie Investment
Counsel, says social media play a role here.
    "Investors and boards want immediate outcomes — blame that
on the instantaneous 'want it now' mentality of social media." 

    <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Winners and laggards: which CEO delivered the best annualized
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 (Reporting by Paolo Laudani and Helen Reid; 
Editing by Matt Scuffham, Lisa Jucca and Tomasz Janowski)
 ((mailto:matthew.scuffham@thomsonreuters.com; +1-332 219 1494;
Reuters Messaging:
rm://matthew.scuffham.reuters.com@reuters.net/))