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FMCG brands turn up the volume on ads as costs and scrutiny rise

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FMCG brands turn up the volume on ads as costs and scrutiny rise

FMCG brands turn up the volume on ads as costs and scrutiny rise

Multiple packaged goods companies are increasing their advertising expenditures to maintain consumer demand amid rising inflation. Nestle India reported a significant rise in ad spending during the September quarter to enhance brand trust. Regulatory scrutiny from the FSSAI has prompted brands to emphasize safety and integrity in their advertising. Influencer-led marketing efforts are expected to grow significantly during the upcoming festive season.

Multiple packaged goods makers increased advertising spends during July-September and said they will sustain the momentum through the next two quarters, despite input cost pressures, to drive volume growth, while food companies also seek to retain consumer trust amid regulatory crackdowns . Maggi noodles and Nan infant formula maker Nestle India , which has received various notices from regulator Food Safety & Standards Authority of India ( FSSAI ) over misleading claims in recent months, increased its ad spends by 46% year-on-year in the September quarter-more than twice its revenue growth rate of 20.5% for the quarter. Advt

"We continued to focus on efficiencies across our operations while significantly increasing investments behind our brands, with advertising and marketing spends up by 46%," Nestle India managing director Manish Tiwary said while announcing the September quarter earnings last week. "Rising inflation, particularly food inflation , is a reality. We remain focused on navigating these external challenges through sustained investments behind brands," he added. PepsiCo, Colgate , Parle and Dabur have also indicated to their agency partners that ad spending momentum will continue in the second and third quarters of the current financial year, media buying executives said.


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