Nestlé ups marketing spend as sales rise

Nestlé has credited its investment in marketing as a driver behind the 6.1% growth in sales registered in the first half of the year.

The Swiss food and drink giant says sales rose to 55.3bn Swiss Francs (£33.2bn) in the six months to 30 June.

Sales of its food and beverage brands, such as Nescafé coffee, Vittel water, Cheerios cereal and Kit Kat chocolate bars rose 5.7% to 51bn (£30.6bn) Swiss Francs.

Marketing spend on its food and drink brands increased by over 14% compared with the same period last year, the company says.

“Recent innovations across all categories, combined with increased investment in consumer-facing marketing, were key to strengthening the Group’s market positions,” it adds.

Sales in Europe increased 2.2% to 10.7bn (£6.4bn) Swiss Francs.

Paul Bulcke, chief executive of Nestlé, says the group’s “very successful” first-half performance is due to its global strategies “covering the full range from premium brands to value-priced offerings”.

He adds: “We have increased investment in our brands, people and capabilities and have prepared the company for a more challenging second half.”

The company reconfirmed earlier full-year guidance for food and beverages of around 5% organic growth.

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