The KitKat owner is investing “across [its] value proposition”, including increasing advertising spend, to win with consumers who are still extremely cost-conscious, its CEO said.
Nestlé’s new CEO has underlined the importance of investment in brand and product innovation as it looks to grow market share, describing it as “critical”. His comments come as he sets out the business’s path to future success after it missed its sales forecast and reduced its outlook for the rest of the year.
Laurent Freixe took over as CEO in August after predecessor Mark Schneider stepped down following several quarters of disappointing sales growth for the business, which owns brands including KitKat, Nescafé and Purina.
The consumer goods giant reported results for the first nine months of its financial year today (17 October). Its total group sales amounted to 67.15bn Swiss Francs (£59.75bn) in the period, with organic growth up 2% versus the same period last year. However, this missed expectations of 2.5% organic sales growth.