Nestle records high sales growth

Nestlé, the Swiss food group enjoyed the biggest organic sales growth for the period in its powdered and liquid beverages brands, which rose 9.8 per cent. They include Nesquik, Nespresso and Nestea. Nestlé UK is understood to be reviewing its digital and direct marketing agency arrangements. A Nestlé UK spokeswoman said the company did not comment on agencies.

Sales for its confectionary brands also rose 4 per cent, with Kit Kat continuing to perform well overall. Meanwhile, its petcare business, which includes brands such as Purina and Go Cat, saw an 8.8 per cent rise in organic sales.

In bottled water business, which includes Buxton, Vittel and Pure Life, saw a 1.9 per cent fall in sales for the period.

Totally sales have fallen 2.2 per cent till September. By region, sales growth in Europe was flat, while Great Britain was strong despite a weaker third quarter performance. By category, sales volumes in Europe were solid in soluble coffee, chilled culinary, powdered beverages and petcare.

Paul Bulcke, Nestlé CEO, says: ''In these challenging times, we have been streamlining our structures and product portfolio and, at the same time, we continue to invest in innovative technologies and expand our R&D capabilities around the world. In addition, we have increased spending in product innovation and consumer-facing brand-support.

''All this allows me to confirm my expectation that volume-driven organic growth will further accelerate and that the EBIT margin in constant currencies will improve for the full year.''