Nestlé to Increase Investment in Advertising and Marketing

Foreks - Nestle's CEO Laurent Freixe announced plans to increase investments in advertising and marketing as part of efforts to stimulate sales growth at the Swiss food giant. The maker of KitKat chocolate and Nescafe coffee stated that, in response to a challenging consumer environment, it would raise spending to boost sales and gain market share, while revising down its profitability expectations for next year and its medium-term sales growth outlook.

Nestle also revealed that its water and premium beverages business would become a standalone global operation as of January 1. According to the company, this business will be led by Muriel Lienau, currently heading Nestle Waters Europe, who will evaluate strategies and explore partnership opportunities.

In the past four months, Nestle has reduced its sales forecasts twice and is now expecting approximately 2% organic sales growth for the year, which is half of what was anticipated at the beginning of the year. In the medium term, when market conditions normalize, the company expects organic sales growth above 4% and a trading operating profit margin exceeding 17%, its preferred profitability metric.