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 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, cosmetic retailer Coty and yoga pants maker Lululemon all changed CEOs last week. They joined a long list of consumer-facing companies making top-level changes this year, including Knorr-manufacturer Unilever and Kit Kat-maker Nestle.
“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, 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 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 is up just 3.3% since the start of this year, significantly lagging the 15.9% gain made by the S&P 500 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 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.”
(Reporting by Paolo Laudani and Helen Reid; Editing by Matt Scuffham, Lisa Jucca and Tomasz Janowski)
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