“Nestle, which has not yet exited the Russian market, will strengthen advertising and marketing, cut costs by at least $2.8 billion by 2027 and separate its premium water and beverage business into a separate global division.”, — write: www.epravda.com.ua
Nestle, which has not yet exited the Russian market, will strengthen advertising and marketing, cut costs by at least $2.8 billion by 2027 and separate its premium water and beverage business into a separate global division.
About this informs Reuters.
Nestle, owner of brands such as Nescafe, KitKat and Milo, said on Tuesday it aims to achieve cost savings of at least 2.5 billion Swiss francs ($2.83 billion) by 2027, on top of current savings of about 1.2 billion Swiss francs.
CEO Laurent Frakes took over Nestle in September, replacing the fired Mark Schneider, who had disappointed investors for several quarters with weak sales growth.
Under Schneider’s leadership, Nestle cut its marketing and advertising budgets and reduced investment in innovation during the COVID-19 pandemic, leading to significant costs.
The company forecasts medium-term organic sales growth of more than 4% under a normal operating environment, and underlying trading profit margins of 17%. That compares with organic sales growth of about 2% expected for the year ending Dec. 31.
The company will increase investment in advertising and marketing to 9% of total sales by 2025 to support growth. The last time Nestle spent such a proportion of its sales on marketing was in 2019.
We will remind:
A Swiss company that still works in the Russian Federation, remains the most expensive food brand in the world.