‘Growth is back’: Nestlé bets on ‘iconic brands’ to drive second half success
Determined not to “buy growth”, Nestlé believes compelling product and brand propositions, alongside managing price, will help the business thrive.
Nestlé believes the strength of its “large iconic brands” will help the business deliver growth over the remainder of 2024, after the business ramped up marketing spend during the first half.
The food and drinks giant increased its marketing and administration spend as a percentage of sales by 130 basis points to 19.9% during the first half of the year. Advertising and marketing investment represented 8.1% of sales, an increase of 100 basis points compared to the first half of 2023.
In total, Nestlé spent 8.98bn Swiss francs (£7.8bn) on marketing and administration during the six months between January and June, up from 8.62bn Swiss francs (£7.5bn) during the same period in 2023.
According to CEO Mark Schneider, “positive real internal growth is back”.
