Zurich, Nov 18 - Nestle, the world's biggest food group, said its board was still strong after it lost a second senior executive in two months, Lars Olofsson, who had been touted as a potential chief executive.
Swiss-based Nestle said its Chief Technology Officer Werner Bauer would temporarily take over the functions of the 57-year old Swede Olofsson, who is moving to French food retailing giant Carrefour as its new chief executive.
Olofsson, who is Nestle's executive in charge of strategy for its marketing and sales operations, will leave the company at the end of November after 32 years at the firm which makes Nescafe coffee, KitKat chocolate bars and Maggi soups.
Olofsson's departure comes after former Chief Financial Officer Paul Polman was named as the new chief executive of rival food and consumer products group Unilever Plc/NV in September.
Analysts said it was expected that some executives might leave after last year's race to replace Chief Executive Peter Brabeck. Polman and Nestle's head of America Paul Bulcke led the field to succeed Brabeck but Olofsson name was also mentioned.
Bulcke won the race and replaced Brabeck in April as chief executive while Brabeck continued as chairman.
"It's kind of a surprise to us that Mr Olofsson leaves Nestle after 32 years but on the other hand a new person might be refreshing," said Vontobel analyst Claudia Lenz.
"Furthermore, a good relationship with one of Nestle's key customers Carrefour is also a future asset," she added.
Analyst David Liston at Barclays Wealth said it would not be a major loss for Nestle as the business is very centrally controlled by the chief executive and chief financial officer, while a departure from its fast-growing nutritional business would have been more of a concern.
Nestle's shares were off 0.85 percent at 44.24 Swiss francs at 1105 GMT.
Sarasin's Patrick Hasenboehler said the moves of Olofsson and Polman were likely driven by disappointment at not getting the top job mixed with the opportunity to lead another big firm.
"A pity, but it also shows how strong Nestle's management base is. The move does not change our investment case," he said. "As a defensive share, Nestle remains a solid investment in the current turbulent stock market environment."
A Nestle spokesman said the fact that so many members of the board were mentioned in the media as possible candidates to replace Brabeck showed the strength of the management team.
"It has been shown time and time again that Nestle has a very strong management team and the success of Nestle is not dependent on any one individual but the strength of the team as a whole," he said.
Nestle said Bauer, who already held the role in 2004 and 2005, would take over Olofsson's functions effective immediately until the board of directors decides on a permanent replacement.