Nestlé looks to 5% growth in 2015 after upping marketing spend

After significantly increasing its consumer facing marketing spend in 2014, Nestlé has announced plans to achieve organic growth of 5% this year, an improvement on its 2014 performance.

In its latest financial results for 2014, the company announced its organic growth rose by 4.5% in its full financial year, though this dropped to 1.9% in Europe, citing Great Britain as one of its challenges.

In terms of marketing, it added that total expenses rose as it increased its consumer facing marketing support for its brands by 5.8%, currency fluctuations aside.

The move was part of an effort to see long term sales success, with plans for the company to increase its revenue in 2015.

Nestlé CEO Paul Bulcke said: “While delivering in the short term, we remain focused on our business long term, strengthening the foundations of future growth. We expect 2015 to be similar to 2014 and we aim to achieve organic growth of around 5% with improvements in margins, underlying earnings per share in constant currencies and capital efficiency.”

Nestlé’s wide portfolio includes the likes of its Nescafé and Nespresso coffee brands, its Nestlé waters business which includes Nestlé Pure Life, Nestlé Nutrition, which comprises of infant nutrition as well as Powerbar, the newly-crated Nestlé Skin Health business, its petcare products as well as Kit Kat, its chocolate brand.

Earlier this year, the company announced plans to double its media spend for Kit Kat with the launch of a £10m multimedia campaign titled “Celebrate the Breaks” after losing sales in the sweet biscuits category last year.

Nielsen data ending 30 September showed that Kit Kat sales had dropped by 11% to £71m year on year causing the brand to maintain its fourth position in the sweet biscuits category, while McVitie’s sales had risen 5% to £393m, putting the brand in the top spot.

However, IRI data from 6 December cited by Nestlé stated that Kit Kat was worth £189m, while the company claimed that a 2014 Millward Brown Brand Healthy Study showed Kit Kat has the highest level of awareness and loyalty amongst all confectionary brands.

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