Nestlé’s KitKat Scores Big with Formula 1 Sponsorship as CEO Freixe Shifts Marketing Strategy
Nestlé, the world’s largest food company, is making waves in the global marketing world with a bold new partnership for its iconic KitKat brand. In a historic move, KitKat has signed a global sponsorship deal with Formula 1, marking a significant shift in Nestlé’s approach to brand promotion under its new CEO Laurent Freixe. The partnership, set to run from late 2025 to 2028, signals a clear intent to broaden KitKat’s global reach and appeal to younger consumers, particularly those under 30, in high-growth markets across the globe.
A Bold Shift: KitKat’s Global Sponsorship Deal with Formula 1
The Formula 1 partnership is a game-changer for Nestlé and KitKat. This deal, which will initially launch in key Formula 1 markets such as Mexico and Brazil, will place KitKat front and center at racetracks and in pit lanes. The brand will also see its famous chocolate wrappers adorned with Formula 1 branding, with additional promotional activities including ticket giveaways for races. This new global marketing strategy is designed to make KitKat synonymous with the fast-paced, high-energy world of motorsport, aiming to capture the attention of younger consumers who are passionate about the sport.
The deal also represents a sharp departure from Nestlé’s long-standing marketing model, which had primarily focused on country-by-country, localized agreements. Historically, Nestlé has avoided large-scale, global partnerships, but this shift marks a new approach under Freixe’s leadership. As Chris O'Donnell, KitKat’s global category leader, explains, this sponsorship is a critical part of Nestlé’s strategy to move from a “very local model” to a more integrated, global approach. O'Donnell says the Formula 1 deal will help to unify KitKat’s global presence and better position the brand in emerging markets.
"This deal is a key part of our strategy to move from what's a very local model today to a more global one," said O'Donnell, who declined to disclose the monetary value of the agreement. The deal is part of a broader effort by Nestlé to elevate KitKat’s profile across multiple regions, with a specific focus on markets in Latin America, where Formula 1 enjoys a growing fan base.
Revitalizing Nestlé's Marketing Approach Under Laurent Freixe
Laurent Freixe took over as CEO of Nestlé in September, succeeding Mark Schneider, who had been ousted due to disappointing sales. Under Schneider, Nestlé faced challenges with weak growth in the face of cost-cutting measures, including slashing marketing budgets during the pandemic. The results of those decisions were evident in the company’s lagging sales performance, which saw consumers turning to cheaper or more innovative brands in the absence of strong marketing support.
Freixe’s appointment represents a sharp break from the past. He has made it clear that Nestlé will prioritize its core brands and significantly ramp up its marketing efforts. KitKat, in particular, is set to benefit from this renewed focus. O'Donnell describes Freixe as a “big supporter” of the Formula 1 deal, noting that Freixe sees the sponsorship as a key opportunity to accelerate KitKat’s growth on the global stage.
Freixe’s strategy also involves increasing Nestlé’s overall investment in marketing and innovation. This year, KitKat has seen a nearly 20% increase in its global marketing budget, a clear sign that the company is committed to restoring its brand investment to pre-pandemic levels. O'Donnell emphasized that this marked a "significant change," with plans to continue ramping up marketing efforts in the coming years.
“We’re now back to pre-COVID levels of investment in KitKat,” O'Donnell said. “This is a significant change, and we anticipate continuing to invest in our brands consistently moving forward."
KitKat’s Brand Value and Growing Market Presence
KitKat is one of Nestlé's biggest revenue generators, valued at over 2 billion Swiss francs ($2.29 billion) globally. The brand is not only a staple in Nestlé’s portfolio but is also a critical asset in driving growth. The increased marketing spend comes at a time when Nestlé is doubling down on its commitment to innovation, consumer engagement, and brand equity.
KitKat’s popularity spans the globe, from Europe to Asia and the Americas, making it one of the company’s most recognized and beloved products. However, like many established brands, KitKat faces increasing competition, especially from brands that appeal to younger, health-conscious consumers. The global snacking industry is also undergoing significant changes, with increasing demand for healthier options and more sustainable products. This changing landscape is why Nestlé has made a concerted effort to target younger consumers who are seeking more than just chocolate bars—they’re looking for a brand that resonates with their lifestyles and values.
Freixe’s leadership is expected to guide Nestlé through this period of transformation by embracing new consumer trends and focusing on brand innovation. KitKat’s increased investment in marketing will be a key part of this shift, helping the brand stay relevant as it navigates an increasingly crowded and competitive marketplace.
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The Impact of Formula 1 Sponsorship on KitKat’s Growth
The Formula 1 partnership is more than just a high-profile sponsorship; it’s a strategic move aimed at positioning KitKat at the intersection of global sport and entertainment. Formula 1, with its global fan base, media coverage, and electrifying events, offers KitKat an unparalleled opportunity to connect with younger, active consumers who are passionate about performance and excitement.
Nestlé has long recognized the importance of targeting younger demographics to maintain its market position, and this deal with Formula 1 is a perfect way to reach that audience. According to O'Donnell, the sponsorship will help boost KitKat’s visibility and drive consumer engagement, particularly in regions where Formula 1 is gaining traction. With Formula 1’s global appeal and KitKat’s established presence, the deal is expected to elevate the brand in key markets, including those in Latin America, where racing fans are already highly engaged with the sport.
In addition to Formula 1, KitKat is expected to continue exploring other global marketing opportunities to increase its relevance with younger consumers. This could include digital campaigns, influencer partnerships, and new product launches that align with the tastes and preferences of the next generation of consumers.
Nestlé’s Future Outlook: Focus on Core Brands and Sustainable Growth
As part of its broader strategic goals, Nestlé is also focused on improving its sustainability efforts, which are increasingly important to modern consumers. The company has been working to reduce its environmental impact and improve the sustainability of its supply chains. In particular, Nestlé has made commitments to reduce plastic waste and increase the use of renewable energy across its operations.
Freixe’s vision for Nestlé is one that combines growth with responsibility. The company's focus on core brands like KitKat, Nescafé, and Haagen-Dazs aligns with this vision, as these brands continue to drive strong revenue and have significant room for expansion. KitKat’s global marketing overhaul, including the Formula 1 sponsorship, is just one part of a broader strategy to reposition the company for success in an ever-changing global marketplace.
By investing in marketing and innovation, and aligning with high-profile, global partners like Formula 1, Nestlé aims to ensure its place as a leader in the food and beverage industry for years to come.
