Nestle to achieve cost savings of at least 2.83 bln by 2027
Company to increase investment in advertising and marketing to 9 of total sales by 2025
Nestle forecasts mediumterm organic sales growth of more than 4

VEVEY, Switzerland, Nov 19 Reuters Nestle will boost advertising and marketing, trim costs by at least 2.8 billion by 2027 and carve out its water and premium drinks businesses into a standalone global unit as it looks to drive growth under its new chief, the company said on Tuesday.

CEO Laurent Freixe, a 40year veteran of the world39;s biggest food company, took the reins in September replacing ousted Mark Schneider who had disappointed investors for several quarters with weak sales volume growth. Under Schneider, Nestle gutted its marketing and advertising budget and invested less in innovation during the costheavy COVID19 pandemic.

The repercussions continue to weigh on the Swiss company39;s revenue after shoppers switched to cheaper, better advertised or more innovative brands, eating into Nestle39;s market share.

Nestle, owner of brands including 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, in addition to rolling savings of around 1.2 billion Swiss francs.

It forecast mediumterm organic sales growth to be more than 4 in a normal operating environment, and an underlying trading operation profit margin of 17. That compares to organic sales growth of about 2 expected…