Peter Blackburn will retire as chairman and chief executive of Nestle UK in July next year, sparking a giant management reshuffle, it was announced today.

He will be succeeded by Alastair Sykes, aged 47, who only recently became managing director of Nestl Rowntree in York - the confectionery division of the group which in the past two years has increased its share of the UK confectionery market.

Taking Mr Sykes' place as managing director in York will be John Sunley, the Nestl UK technical and human resources director. He is a former general manager at the York factory

Mr Blackburn, recently described as "the most dangerous man in York" by a tabloid newspaper opposed to his pro-Euro views, will remain a non-executive director of Nestl once Mr Sykes begins to prepare for his new appointment in March 2001.

But during the second half of next year Mr Blackburn will concentrate on his role as president of the Food and Drink Federation.

A spokesperson for the group said: "Further announcements will be made nearer the time of Mr Blackburn's retirement when it will be appropriate to pay tribute to his long and successful career with Rowntree Mackintosh and Nestl."