Domino's puts sales rise down to ads

By Jennifer Whitehead,,, Wednesday, 24 July 2002 02:25PM

LONDON - Domino's Pizza has said a 16% increase in sales over the past six months is due to its ongoing advertising campaigns.

The statement came as advertising pressure group ISBA criticised proposals for a "fat tax" on junk food advertising, claiming: "ISBA maintains that there is no significant direct effect of TV advertising on consumption of specific foods."

The pizza delivery chain said that like-for-like sales were up by 15.8% for the six months ending June 30, and that operating profit was up by 41.3% to £1.88m.

During this period, Domino's has continued to sponsor 'The Simpsons' on Sky One, as well as advertising the benefits of its Heatwave delivery service. The chain's advertising is created by Gozian Productions, while media is handled by BLM Media.

Stephen Hemsley, chief executive of Domino's, said in a statement: "Our significant sales growth has also been greatly assisted by effectively communicating our focus on product service and image, and the continued use of targeted and effective national terrestrial TV advertising."

Domino's pays for its advertising through a fund into which each UK store invests 4% of sales. As sales increase, the chain has more to spend on advertising.

The company also said that e-commerce net sales had increased by 28%, totalling £1.9m.

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