Nestle SA’s new Chief Executive Officer Laurent Freixe plans to increase marketing spending to restore shoppers’ appetite for the company’s pricier brands. The move will mean lower profitability for the medium term.

Nestle will step up advertising and marketing, cut costs, split its water and premium drinks business out of the rest of the company, and make other changes to drive growth under new CEO Laurent Freixe,

Nestlé is home to 31 brands that are "billionaires" in their own right. Still, it's slipped behind competitors—new CEO Laurent Freixe wants to fix that.

Nestle said it would step up advertising and marketing investment as part of Chief Executive Laurent Freixe’s plan to revive sales growth the Swiss food giant.

Nestle will boost advertising and marketing, trim costs by at least $2.8 billion by 2027 and carve out its water and premium drinks businesses into a standalone global unit as it looks to drive growth under its new chief,