UD cuts below-the-line spend to increase funds for TV ads

United Distillers, the spirits arm of Guinness, is to slash below-the line promotional spending on Gordon’s gin and Bell’s whisky and divert funds into above-the-line advertising.

Analysts say UD will hike its 300m-a-year worldwide advertising and promotional budget by up to nine per cent next year, and the bulk of the increase will be in advertising spend. In the UK this increase could be worth about 3m.

The increase in the UK’s advertising budget will be used to pay for television advertising, say analysts. UD’s managing director, Finn Johnsson, confirms that Gordon’s will be advertised on TV before Christmas. It will use an adapted 40-second version of the cinema ad for the Innervigoration campaign.

Johnsson outlined UD’s strategy to investors and analysts in London, this week. He said: “As competitive conditions allow, we will redirect promotional spend into greater investment in brand building.”

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