LONDON (Reuters) – Nestlé’s KitKat has secured a global sponsorship deal with Formula 1, as CEO Laurent Freixe aims to reshape the company’s marketing strategy. This move focuses on promoting Nestlé’s core, billion-dollar brands in a more unified global manner. #KitKatFormula1
A senior executive disclosed to Reuters that the deal would run from late 2025 through 2028, with a goal to enhance KitKat’s global presence. The primary target audience is shoppers under 30 years old, with an emphasis on expanding the brand’s reach.
Starting in Mexico and Brazil, KitKat’s presence will be visible on Formula 1 tracks, pit lanes, and chocolate wrappers. The partnership will also offer race tickets to fans, marking a significant change in Nestlé’s marketing approach.
“(The deal is) a key part of our strategy to move from what’s a very local model today, very fragmented,” said Chris O’Donnell, KitKat’s global category leader, declining to disclose the monetary value of the deal.
KitKat’s global marketing budget has increased by almost 20% this year, according to O’Donnell. The brand is now valued at over 2 billion Swiss francs ($2.29 billion) globally.
“We’re now back to pre-COVID levels of investment (in marketing in KitKat). That’s a significant change, and we anticipate to keep investing behind the brands,” he said.
Nestle, known for Nescafe and Haagen-Dazs, rarely discloses marketing spending or specific brand sizes. KitKat’s valuation makes it one of the company’s top revenue sources, though smaller than coffee, petcare brands, and Maggi.
KitKat’s marketing spend growth significantly outpaces Nestle’s overall spending increases. In 2023, advertising and marketing expenses were 7.7% of sales, an 80 basis point rise from the previous year.
Under former CEO Mark Schneider, Nestle reduced its marketing budget during the pandemic, and the impact is now affecting revenue.
Schneider was replaced in August after weak sales volumes resulted from cuts in innovation and marketing to reduce costs during high prices. This caused shoppers to switch to cheaper or more distinct brands, impacting market share.
Freixe, who took over in September, plans to focus on Nestle’s core brands. He strongly supported the KitKat deal, according to O’Donnell. #KitKatFormula1
KitKat Formula 1 Partnership: A Sweet Formula for Global Appeal
Additionally, KitKat will feature Formula 1 branding on its chocolate wrappers, further engaging fans. Formula 1 races in Mexico and Brazil will kick off the partnership, marking an exciting new chapter for the brand. This strategy is part of Nestlé’s plan to enhance KitKat Formula 1’s connection with global consumers.
