Nestlé pledges to increase brand investment

Nestlé, owner of the Nescafe, Kit Kat and Haagen Dazs brands, has pledged to increase investment in its brands after reporting a 6.5% increase in group sales for the first quarter of the year.

Haagen Dazs
Haagen Dazs

The Switzerland-based food, pharmaceutical and petcare company reported group sales of 26.3bn Swiss francs (£23.9bn), up from 25.2bn francs in the same period last year.

The company says growth was driven by an increase in product sales, as volumes improved 4.8%. Nestlé says this ha been due to the marketing of the products as “affordable and nutritious.”

The company is to expand its brand portfolio in the UK with the launch of its Jenny Craig weight loss service, later this spring.

Paul Bulcke, Nestlé CEO, says: “Our strong sales performance in the first quarter confirms we are capturing opportunities in our different growth pillars, both in emerging and developed markets, even in a global economic environment which remains challenging. By keeping the initiative and with appropriate pricing, we are building our market positions in different categories as part of our long-term, disciplined commitment to sustainable, profitable growth.”

“We continue to increase investment in our brands, our innovation and new manufacturing and distribution capabilities, and will further drive our efficiency programmes across the world. I therefore reconfirm our outlook for 2010, both top and bottom line improvement.”

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