Nestlé Concentrated Marketing Spend on Fewer Brands
The company reduced its advertised portfolio to 135 brands to increase marketing ROI.
Updated on Oct. 9, 2026 in Advertising
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Nestlé slashed its number of brands supported by paid media from approximately 400 down to 135 during the first half of 2026. This consolidation was accompanied by a rise in advertising and marketing spending to 8.9% of global sales.
Why it matters
By narrowing its focus, the company intends to increase the return on every Swiss franc invested in advertising and allocate resources to platforms with stronger growth prospects. This shift reflects a strategic move to prioritize efficiency over broad portfolio visibility.
Nestlé reported global sales of CHF 43.109 billion in the first half of 2026, with marketing and advertising expenses hitting 8.9% of sales. E-commerce channels were a key performance driver, accounting for 21.8% of total sales with 12.2% organic growth.
The players
Nestlé
A multinational food and beverage manufacturer headquartered in Switzerland that manages a vast global portfolio of consumer brands.
The details
The strategy involves shifting capital toward digital retail media and influencer marketing to capture shifting consumer habits. Management also expanded its measurement coverage of marketing return on investment to better track the performance of paid media and promotions across the remaining, more focused brand portfolio.
Timeline
In the first half of 2024, advertising expenses represented 8.1% of sales.
In the first half of 2025, advertising expenses represented 8.6% of sales.
In the first half of 2026, advertising expenses reached 8.9% of sales.
Market Landscape
This consolidation follows the broader industry pattern of the rise of retail media and digital marketing integration in CPG brand management. By narrowing the brand footprint, the company is following a common efficiency drive seen among major multinationals looking to optimize spend.
Operators should review their marketing mix to identify if spreading budgets too thin across low-growth products is eroding overall ROI. Focus on establishing robust measurement protocols for digital retail media to ensure every dollar of spend is tied to quantifiable sales growth.
The takeaway
Concentrating ad spend on top-tier assets allows for more aggressive, data-driven marketing investments. Operators should evaluate their product list to determine which items drive the most organic growth and consolidate marketing efforts exclusively around those leaders.
Further reading
For more on industry shifts, see Advertising.
Source note: This article includes information reported by Merca2.0 Magazine.
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