Nestle has reported a strong growth in sales and profits in the first half of the year, with the company’s marketing investments paying off. The food and beverage giant increased its marketing spend by 7.2% in the first six months of the year, as it looks to drive growth in key markets around the world. This investment in marketing has helped Nestle deliver organic growth of 8.1%, well above the company’s long-term target of 5-6%.
Nestle’s CEO, Mark Schneider, attributes much of this success to the company’s focus on innovation and marketing. He believes that by investing more in marketing, Nestle is able to reach and engage more consumers, driving sales and profits in the process. This increased focus on marketing has seen Nestle launch a number of new products in recent months, including plant-based offerings and premium coffee products, which have resonated well with consumers.
Schneider also points to the impact of the Covid-19 pandemic on consumer behavior, with people spending more time at home and looking for convenient and healthy food and beverage options. Nestle has been able to capitalize on this trend by promoting its range of products as convenient, nutritious, and affordable, which has helped drive sales in key markets.
In addition to its marketing efforts, Nestle has also been focusing on sustainability and responsible sourcing. The company has set ambitious targets to reduce its environmental impact, including a goal to achieve net zero greenhouse gas emissions by 2050. This commitment to sustainability has resonated well with consumers, who are increasingly looking for brands that share their values and priorities.
Looking ahead, Schneider is optimistic about Nestle’s prospects for the rest of the year, despite the ongoing challenges posed by the pandemic. He believes that the company’s strong performance in the first half of the year is a testament to the strength of its brand and the ongoing investments in marketing and innovation. Nestle will continue to focus on driving growth in key markets and delivering value to consumers, while also remaining committed to its sustainability goals.
Overall, Nestle’s strong growth in sales and profits in the first half of the year is a testament to the company’s continued focus on marketing, innovation, and sustainability. By investing more in marketing and launching new products that resonate with consumers, Nestle has been able to drive organic growth well above its long-term target. With a commitment to sustainability and responsible sourcing, Nestle is well-positioned to continue delivering value to consumers and driving growth in key markets around the world.
