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Nestlé reports ad-spend hike, Keurig Dr Pepper invests beyond core products

By Christopher Lombardo
July 24, 2025

Nestlé reports bump to ad-spend launches strategic brand review

Nestlé said in its first-half earnings call that it is hiking its marketing spend and launching a strategic review of underperforming vitamin and supplements brands.

The company reported organic sales growth of 2.9% on Thursday, with real internal growth of 0.2% and pricing of 2.7%.

The maker of KitKat chocolate bars, Nespresso coffee and Stouffer’s frozen foods is reporting that marketing investment increased, with advertising and marketing expenses reaching 8.6% of sales in the first half of 2025 compared with 8.1% during the same period in 2024.

Nestlé’s “Fuel for Growth” program – its cost-savings initiative designed to free up resources for investments in growth areas – is delivering efficiencies that have allowed it to achieve “more consumer impact” from its ad spend, the company said.

Nestlé said it is on track to reach its planned increase in marketing intensity earlier than expected and at a lower cost.

In water, Nestlé reported that it saw “broad based growth, particularly with Maison Perrier and Sanpellegrino brands.”

In coffee, the company reported “good demand” for Nespresso and “another quarter of solid growth” for the brand.

The CPG also announced that it has launched a strategic review of underperforming mainstream vitamin and supplement and value brands, including Nature’s Bounty and U.S. private label, which may result in the divestment of these products.

Keurig Dr Pepper explores opportunities in energy drinks

Keurig Dr Pepper is promising investment in different types of beverages beyond its core after it topped second-quarter earnings expectations.

The company reported adjusted earnings per share of $0.49 on Thursday to top the analyst estimate of $0.47 as revenue reached $4.16 billion USD to beat the $4.14 billion USD forecast.

In his second-quarter update, CEO Tim Cofer cited the company’s “State of Beverages” trend report from June to underscore the importance of beverages and how evolving consumer preferences are shaping demand. Cofer said company research shows that about half of all Americans, and three quarters of Gen Z, trial a new beverage every month.

This year, Keurig Dr Pepper is rolling out a “robust innovation slate” of carbonated soft drinks and, according to Cofer, 7-Up has experienced “renewed momentum” with flavour innovations.

Its Dr Pepper “Jurassic Park Rebirth“ in-store, media partnership and points promotion is driving success for the brand, the company said.

Motts growth accelerated behind product and packaging innovations and a new brand campaign has helped sustain momentum, according to the report.

In coffee, Lavazza is experimenting with flavoured products, the company says, while its ready-to-drink offerings are performing strongly, particularly the La Colombe roast.

In Canada, Keurig Dr Pepper is driving strong relative performance with market-share gains in K-Cup single-serve pods.

The CPG also said it is reshaping its portfolio and increasing exposure to untapped opportunities in areas such as energy drinks, a “major focus” for the brand as an attractive high-growth category.

For the third quarter, Keurig Dr Pepper will launch a health friendly carbonated option as part of a partnership with Blume prebiotic drinks, Cofer said.

Increased investments are also in the works as the company looks to build a presence in new categories such as powdered-drink mixes and liquid-water enhancers.