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A tough test on Russia for the man who turned round Nestlé

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With the eyes of the world on Vladimir Putin’s brutal invasion, the Ukrainian prime minister spoke to Nestlé chief government Mark Schneider final week, after which took to Twitter.

“Talked to Nestlé CEO Mr Mark Schneider concerning the aspect impact[s] of staying in Russian market,” Denys Shmyhal tweeted. “Sadly, he reveals no understanding. Paying taxes to the price range of a terrorist nation means killing defenseless kids [and] moms. Hope that Nestlé will change its thoughts quickly.”

Lower than every week later, the maker of Purina pet meals, KitKat chocolate and Maggi noodles halted Russian gross sales of most of its manufacturers, having already halted imports to Russia of “non-essential” merchandise.

The tweet was a uncommon second of public animosity in direction of Nestlé’s first chief from outdoors the corporate in virtually a century, who, since taking on 5 years in the past, has endeared himself to the market whereas setting out a number of the sector’s extra bold environmental targets.

“Mark Schneider had turn into a voice of change relating to ecological points — that’s what makes this so disappointing when it comes to [Nestlé’s] status,” stated Guido Palazzo, professor of enterprise ethics on the College of Lausanne.

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Nevertheless, Palazzo stated Nestlé had been singled out for criticism due to its international prominence — it’s the world’s largest meals firm and made about $1.8bn, or simply beneath 2 per cent, of its revenues in Russia final yr — moderately than its explicit method. Companies from oil majors to know-how teams have confronted criticism over their place and numerous Nestlé’s rivals have stopped in need of pulling out.

“When the general public moralises enterprise choices they may concentrate on essentially the most seen manufacturers,” Palazzo stated.

The outcry over Russia is a number of the hardest public scrutiny Schneider has confronted since he was appointed from German healthcare group Fresenius 5 years in the past.

Nestlé has now halted Russian gross sales of most of its manufacturers © Peter Klaunzer/EPA/Shutterstock

The rent, not simply from outdoors the corporate however outdoors the buyer items sector, was an “extraordinary choice”, stated Nestlé shareholder Christopher Rossbach, of J Stern & Co.

A 56-year-old Harvard MBA graduate, Schneider was born in Neuwied, Germany however took US citizenship in 2003. He spent 15 years at Fresenius, 13 of them as chief government. Earlier than that he labored on the German family-owned group Haniel.

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Nestlé board members have been impressed by Schneider’s potential at Fresenius, as a comparatively younger chief, to win older executives over to his transformation plans, a former director stated.

“Mark is comparatively low-key by the requirements of chief executives; he’s hyper-smart, and he’s at all times ready,” stated Roger Altman, founding father of US funding financial institution Evercore, who has labored with Nestlé for many years.

When Schneider took over, the corporate “was thought-about sluggish, sluggish to maneuver, sprawling,” stated Bruno Monteyne, analyst at Bernstein. Gross sales development in 2017 was the slowest in not less than 20 years. That yr, activist investor Third Level introduced it had taken a stake and would push for structural modifications.

Since then, “the tempo of choice making has gone loads sooner,” Monteyne stated. Nestlé has carried out greater than 85 transactions and the equal of a fifth of group gross sales in 2017 now come from new companies, in accordance with Barclays.

Schneider exited mature classes, like US bottled water, and pushed into higher-growth areas akin to specialist medical diet, dietary dietary supplements and plant-based proteins. There was additionally a $7bn deal to promote Starbucks merchandise outdoors the café chain. Gross sales development final yr was the very best in a decade.

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Now Nestlé is a market darling. The one European shopper items teams extra extremely valued in relation to earnings, stated Monteyne, are the smaller chocolate maker Lindt and cosmetics group L’Oréal. Nestlé’s share value has improve 64 per cent since Schneider took over, in opposition to 2.4 per cent for Unilever and a decline for Kraft Heinz.

Third Level divested final yr regardless of Schneider adopting solely a few of its calls for. It had pushed for Nestlé to promote its complete stake in L’Oréal; as an alternative Nestlé diminished it by €9bn, leaving it with a 20 per cent holding within the cosmetics group.

Third Level level chief government Dan Loeb informed the Monetary Instances: “Mark is the uncommon chief . . . who understands each operations and capital allocation. Consequently, he has been capable of lead Nestlé into the twenty first century whereas driving long run shareholder worth.”

Schneider has additionally pushed sustainability initiatives together with a pledge to spend as much as $2bn to extend recycled plastic in packaging. He has declared that Nestlé has handed “peak carbon”.

Mark Kramer, senior lecturer at Harvard Enterprise Faculty and a member of Nestlé’s unbiased advisory board on inexperienced and social points, stated: “I’ve seen great evolution of his pondering there. For the final three years he has actually made [sustainability] a centrepiece of the enterprise.”

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Schneider maintains a low-profile public picture, hardly ever showing within the media. In his leisure time he takes care of his two labradoodles and concocts elaborate smoothies. He incessantly attends Nestlé’s analysis labs to pattern futuristic meals like plant-based shrimp, or “vrimp”.

He has meticulously managed market expectations and cultivated sturdy relationships with traders. Simon Jäger, portfolio supervisor at top-15 investor Flossbach von Storch, stated: “He’s an analytical sort of particular person and that’s totally different to different CEOs within the sector who come from extra of a advertising and marketing background . . . We really feel very comfy letting him get on and do the job.” One other top-15 shareholder stated Schneider is “humble and can focus on something”.

The following 5 years could also be harder than the primary. In addition to navigating the query of Russia, Schneider should now additionally deal with runaway commodity value inflation and the potential of a recession in Europe.

On Russia, traders stated they trusted Schneider to navigate a tough line between responding to the invasion and taking duty for the corporate’s 7,000 employees in Russia and its provision of important items. Nestlé’s Ukrainian enterprise, in the meantime, continues to function at 60 per cent of regular capability.

“He has the instruments and the expertise to do it,” Jäger stated.

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US Supreme Court rejects Sackler liability releases in Purdue bankruptcy

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US Supreme Court rejects Sackler liability releases in Purdue bankruptcy

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The US Supreme Court has invalidated a measure in Purdue Pharma’s bankruptcy that would shield members of the company’s founding Sackler family from future civil liability in exchange for a $6bn contribution, in a closely watched case involving the maker of the opioid OxyContin.

The Department of Justice had sought to invalidate the comprehensive liability releases granted to the Sacklers, saying they could not be justified under existing US law. The Supreme Court on Thursday agreed in a 5-4 ruling.

But the high court’s majority stressed that its decision was a “narrow one” that did not “call into question consensual third-party releases offered in connection with a bankruptcy reorganisation plan”.

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CAUGHT ON CAM: Massive sinkhole swallows part of soccer field

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CAUGHT ON CAM: Massive sinkhole swallows part of soccer field

TAMPA, Fla. (WFLA) — Surveillance video captured a massive sinkhole opening up in the middle of a soccer field in Illinois.

According to NBC affiliate KSDK, the sinkhole is roughly 100 feet wide and 30 feet deep.

The video shows a light pole being swallowed, along with some bleachers, where benched players would sit during their games. Thankfully, no one was seated there at that time.

“It looks like something out of a movie, right? It looks like a bomb went off,” the Director of Alton’s Parks and Recreation Department told KSDK.

KSDK said the cause is reportedly due to an underground mine.

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The owners of the mine said the area is currently closed while inspectors conduct repairs.

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Toplines: June 2024 Times/Siena Poll of Registered Voters Nationwide

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Toplines: June 2024 Times/Siena Poll of Registered Voters Nationwide

How This Poll Was Conducted

Here are the key things to know about this Times/Siena poll:

• We spoke with 1,226 registered voters from June 20 to 25, 2024.

• Our polls are conducted by telephone, using live interviewers, in both English and Spanish. More than 90 percent of respondents were contacted on a cellphone for this poll.

• Voters are selected for the survey from a list of registered voters. The list contains information on the demographic characteristics of every registered voter, allowing us to make sure we reach the right number of voters of each party, race and region. For this poll, we placed nearly 150,000 calls to more than 100,000 voters.

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• To further ensure that the results reflect the entire voting population, not just those willing to take a poll, we give more weight to respondents from demographic groups that are underrepresented among survey respondents, like people without a college degree. You can see more information about the characteristics of our respondents and the weighted sample at the bottom of the page, under “Composition of the Sample.”

• The poll’s margin of sampling error among registered voters is plus or minus three percentage points. In theory, this means that the results should reflect the views of the overall population most of the time, though many other challenges create additional sources of error. When computing the difference between two values — such as a candidate’s lead in a race — the margin of error is twice as large.

If you want to read more about how and why we conduct our polls, you can see answers to frequently asked questions and submit your own questions here.

Full Methodology

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The New York Times/Siena College poll of 1,226 registered voters nationwide, including 991 who completed the full survey, was conducted in English and Spanish on cellular and landline telephones from June 20 to 25, 2024. The margin of sampling error is plus or minus three percentage points for registered voters and plus or minus 3.2 percentage points for the likely electorate. Among those who completed the full survey, the margin of sampling error is plus or minus 3.5 percentage points for registered voters and plus or minus 3.6 percentage points for the likely electorate.

Sample

The survey is a response rate-adjusted stratified sample of registered voters on the L2 voter file. The sample was selected by The New York Times in multiple steps to account for differential telephone coverage, nonresponse and significant variation in the productivity of telephone numbers by state.

First, records were selected by state. To adjust for noncoverage bias, the L2 voter file was stratified by statehouse district, party, race, gender, marital status, household size, turnout history, age and home ownership. The proportion of registrants with a telephone number and the mean expected response rate were calculated for each stratum. The mean expected response rate was based on a model of unit nonresponse in prior Times/Siena surveys. The initial selection weight was equal to the reciprocal of a stratum’s mean telephone coverage and modeled response rate. For respondents with multiple telephone numbers on the L2 file, the number with the highest modeled response rate was selected.

Second, state records were selected for the national sample. The number of records selected by state was based on a model of unit nonresponse in prior Times/Siena national surveys as a function of state, telephone number quality and other demographic and political characteristics. The state’s share of records was equal to the reciprocal of the mean response rate of the state’s records, divided by the national sum of the weights.

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Fielding

The sample was stratified according to political party, race and region and fielded by the Siena College Research Institute, with additional field work by ReconMR, the Public Opinion Research Laboratory at the University of North Florida, the Institute of Policy and Opinion Research at Roanoke College, and the Center for Public Opinion and Policy Research at Winthrop University in South Carolina. Interviewers asked for the person named on the voter file and ended the interview if the intended respondent was not available. Overall, 91 percent of respondents were reached on a cellular telephone.

The instrument was translated into Spanish by ReconMR. Bilingual interviewers began the interview in English and were instructed to follow the lead of the respondent in determining whether to conduct the survey in English or Spanish. Monolingual Spanish-speaking respondents who were initially contacted by English-speaking interviewers were recontacted by Spanish-speaking interviewers. Overall, 13 percent of interviews among self-reported Hispanics were conducted in Spanish, including 17 percent of weighted interviews.

An interview was determined to be complete for the purposes of inclusion in the ballot test question if the respondent did not drop out of the survey by the end of the two self-reported variables used in weighting — age and education — and answered at least one of the age, education, race or presidential election ballot test questions.

Weighting — registered voters

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The survey was weighted by The Times using the R survey package in multiple steps.

First, the sample was adjusted for unequal probability of selection by stratum.

Second, the sample was weighted to match voter file-based parameters for the characteristics of registered voters.

The following targets were used:

• Party (party registration if available, or else classification based on a model of vote choice in prior Times/Siena polls) by whether the respondent’s race is modeled as white or nonwhite (L2 model)

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• Age (Self-reported age, or voter file age if the respondent refuses) by gender (L2)

• Race or ethnicity (L2 model)

• Education (four categories of self-reported education level, weighted to match NYT-based targets derived from Times/Siena polls, census data and the L2 voter file)

• White/non-white race by college or non-college educational attainment (L2 model of race weighted to match NYT-based targets for self-reported education)

• Marital status (L2 model)

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• Home ownership (L2 model)

• National region (NYT classifications by state)

• Turnout history (NYT classifications based on L2 data)

• Method of voting in the 2020 elections (NYT classifications based on L2 data)

• Metropolitan status (2013 NCHS Urban-Rural Classification Scheme for Counties)

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• Census tract educational attainment

Finally, the sample of respondents who completed all questions in the survey was weighted identically, as well as to the result for the general election horse race question (including leaners) on the full sample.

Weighting — likely electorate

The survey was weighted by The Times using the R survey package in multiple steps.

First, the samples were adjusted for unequal probability of selection by stratum.

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Second, the first-stage weight was adjusted to account for the probability that a registrant would vote in the 2024 election, based on a model of turnout in the 2020 election.

Third, the sample was weighted to match targets for the composition of the likely electorate. The targets for the composition of the likely electorate were derived by aggregating the individual-level turnout estimates described in the previous step for registrants on the L2 voter file. The categories used in weighting were the same as those previously mentioned for registered voters.

Fourth, the initial likely electorate weight was adjusted to incorporate self-reported intention to vote intention. The final probability that a registrant would vote in the 2024 election was four-fifths based on their ex ante modeled turnout score and one-fifth based on their self-reported intentions, based on prior Times/Siena polls, including a penalty to account for the tendency of survey respondents to turn out at higher rates than nonrespondents. The final likely electorate weight was equal to the modeled electorate rake weight, multiplied by the final turnout probability and divided by the ex ante modeled turnout probability.

Finally, the sample of respondents who completed all questions in the survey was weighted identically, as well as to the result for the general election horse race question (including leaners) on the full sample.

The margin of error accounts for the survey’s design effect, a measure of the loss of statistical power due to survey design and weighting. The design effect for the full sample is 1.21 for registered voters and 1.33 for the likely electorate. The design effect for the sample of completed interviews is 1.24 for registered voters and 1.33 for the likely electorate.

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Historically, The Times/Siena Poll’s error at the 95th percentile has been plus or minus 5.1 percentage points in surveys taken over the final three weeks before an election. Real-world error includes sources of error beyond sampling error, such as nonresponse bias, coverage error, late shifts among undecided voters and error in estimating the composition of the electorate.

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