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STORY: In its nearly 160-year history, Nestle has never signed a global marketing deal.

But now, the world's biggest food company has agreed a sponsorship deal with Formula 1.

A senior executive told Reuters that the deal with Nestle's KitKat brand had been struck for between late 2025 and 2028.

And the aim is to improve KitKat's global reach and appeal to shoppers under 30 years old.

It marks a major shift for Nestle.

It's previously relied on country-by-country agreements, rather than big global contracts.

But new Chief Executive Laurent Freixe wants to change the way it markets its core, multi-billion-dollar brands.

Through the deal that will start in Mexico and Brazil, Formula 1 racetracks and pit lanes will have KitKat advertising.

Chocolate wrappers will have Formula 1 branding.

And Nestle will give away hundreds of race tickets.

KitKat declined to disclose the monetary value of the deal.

But the brand's global marketing budget has risen nearly 20% so far this year.

Nestle, which also makes Nescafe and Haagen-Dazs, does not typically reveal details about marketing spend.

Formula 1 is on something of a sponsorship streak.

Last month, French luxury giant LVMH said it had reached a 10-year deal with the racing brand.