Boost in Marketing Spend Reaps Good Rewards for Nestle

Global food manufacturer Nestle has said that the decision to boost their marketing spend has helped boost revenue for the first half of this year.

The company, which owns KitKat and Nespresso, has reported a 7.5% increase in their underlying sales to 41bn Swiss Franks (£34.8bn), for the six months leading to June 2011.

During this time, Nestle increased their marketing spend by 6.2% and also upped their investment in research and development in order to drive innovation.

Nestle's sales growth in both developed markets such as Europe and emerging markets is also more notable when compared to the current difficult economic conditions and "subdued consumer confidence".

Paul Bulcke, Nestle CEO, has said that the "solid" performance has been driven by "leveraging our competitive advantages, investing behind our growth drivers and excelling in operational efficiency and effectiveness."

He added: "Nestle continued to make good progress in a period characterised by political and economic instability, natural disasters, rising raw material prices and, yes, a strong Swiss franc. This has made for an extremely tough, volatile and competitive environment."

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