Kraft Foods’ third-quarter sales rose 4.7% to $7.8 billion, thanks in part to a $160 million marketing boost.
Kraft has spent an additional $400 million on marketing so far this year, and expects to add another $125 million to $175 million to its budgets by yearend.
The company credits the marketing increase, new products and commodity-driven pricing for improving sales for the quarter ended Sept. 30.
“In the U.S., new products are gaining traction and increased marketing spending is having its intended effect,” said CEO Roger Deromedi in a statement.
More than 90% of the additional money supports brands in North America, Kraft’s biggest market. Budget boosts have proven their worth: Brands that got at least a 10% bump in spending have seen sales rise an average of 6%, Kraft said.
Northfield, IL-based Kraft’s North America Commercial division reports sales of $5.47 billion for the quarter, up 5.2%.
Worldwide, sales for the nine months rose 4.6% to $23.73 billion. Volume sales rose 3.2%, driven in large part by acquisitions. Marketing, administration and research costs total $4.77 billion for the nine months ended Sept. 30.
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