PepsiCo’s marketing blitz spurs European sales

PepsiCo’s increased marketing spend for brands such as Doritos and Tropicana has helped lift sales across Europe for its latest quarter.

High profile campaigns for brands such as Doritos helped lift PepsiCo sales in Europe.

The food and drink maker posted a three per cent year-on-year jump in European sales to $£3.8bn (£2.4bn) for the three months to 7 September. Snack volumes rose three per cent over the same period while beverage volumes sagged one per cent.

Although PepsiCo did not strip out UK ad spend, globally its media outlay rose 8 per cent in the quarter. It supported top brands such as Doritos and Walkers in the UK through high-profile campaigns during this time.

Elsewhere, global sales were up 1.5 per cent to $16.9bn (£10.6bn) as declining demand across the Asia, the Middle East, Africa and the Americas hampered growth.

Indra Nooyi, chairman and chief executive for PepsiCo, says: “Our strategy is to compete on the basis of innovation and marketing and to manage the business responsibly and profitably. We are convinced this is the right strategy to increase shareholder value given category realities.

The latest figures signal the company’s turnaround plan for its top 12 brands is starting to take effect in Europe .

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