Nestlé sales and marketing spend up

Nestlé, owner of the Nescafe, Kit Kat and Haagen Dazs brands, is aiming to grow sales again this year after reporting a 4.1% increase for 2009.


The food group says sales rose to 108bn Swiss Francs (£64.5bn) across the group. In its food and drinks division, sales increased by 3.9% on an organic basis to 100bn Swiss Francs (£59.8bn).

Net profit dipped to 10.4bn Swiss Francs (£6.2bn) from the 18bn (£10.7bn) it made in 2008 when income was boosted by the sale of its stake in eye care firm Alcon.

The company says marketing and administrative expenses rose by 110 basis points to 33.7% of sales, while media spend increased by 10% at constant currencies.

Nestlé says it expects its food and beverages business to achieve higher organic growth this year than last, “in spite of continued economic uncertainty in 2010”, after reconfirming its faith in the “Nestle business model”.

The company’s financial results follow the news that it had appointed digital agency Dare and direct marketing agency EHS 4D to its agency roster. It also emerged this week that its Nestlé Nutrition business is finalising plans for a full launch of its telephone-based weight loss brand, Jenny Craig, in the UK next month.

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