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STORY: Nestle shares tumbled 4% early Friday (August 23).

Investors were spooked by the sudden departure of CEO Mark Schneider from the world's biggest foodmaker.

The surprise exit was announced late Thursday following a board meeting that ended his near eight-year reign.

Investor confidence in Schneider had waned over the last 15 months, but markets were still shaken by his exit.

The company's shares have been on a downward slide since May last year after a series of mishaps, earnings misses and guidance downgrades.

Nestle has trailed rivals like Danone and Unilever in recent quarters, and critics say the firm has been too reliant on price rises.

They argue this has hit sales volumes as cash-strapped customers turned to cheaper brands.

Schneider is replaced by 62-year-old company veteran Laurent Freixe.

He faces rebuilding market share and increasing sales volumes in a tough market.

The new CEO immediately pledged to focus Nestle on organic growth rather than acquisitions.

Freixe led Nestle's European business in the wake of the global financial crisis.

Most recently he was head of the firm's Latin America zone, which saw strong growth on his watch.