CAGNY 2014: Coca-Cola Co lines up US$400m media spend
Coca-Cola announced FY results this week
The Coca-Cola Co will inject US$400m into media backing for its brands this year as it shifts marketing focus from consumer promotions to advertising, its CEO has said.
Speaking at the Consumer Analyst Group of New York (CAGNY) conference today (21 February), Muhtar Kent said the company will also create a new “highly nimble” marketing organisation to link its global campaigns. Kent's announcement follows his company's pledge during full-year results this week to increase marketing spend on its brands by generating US$1bn in productivity by 2016.
“That's the kind of support our brands require and the kind they deserve,” Kent said today.
The increase will mean less price cutting on Coca-Cola brands as the company “redeploys” money from consumer promotions to media spending, Kent said.
“This will require us to expand investment in new media and strengthen in existing media,” he added.
This year is expected to be a big year for advertising, with the ongoing Sochi Winter Olympics and June and July's Brazil World Cup.
Kent was talking at the 50th CAGNY conference, being held in Florida. At the beginning of his speech he said Coca-Cola's disappointing full-year results, announced earlier this week, left him “more constructively disappointed than ever before”.
Yesterday the group also revealed it will have a new CFO from April, as Gary Fayard is set to retire.
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