Kraft Moves $40 Million Piece of Business Between Roster Shops

McGarryBowen Gets Lunchables Account From DraftFCB

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CHICAGO (AdAge.com) -- Kraft has moved its estimated $40 million Lunchables business from DraftFCB, Chicago, to McGarryBowen, Chicago. DraftFCB, which still handles the majority of Kraft's top-spending U.S. brands, won the business in 2007.

In the past two years, Kraft has consolidated the majority of its brands with McGarryBowen and DraftFCB quietly and often without review. DraftFCB, for instance, has slowly added cookies and crackers, taking over, for example, the Wheat Thins brand.

McGarryBowen has been on Kraft's roster for nearly three years, and has steadily expanded that relationship at the cost of other agencies on Kraft's roster. It has added a slew of different Kraft brands, such as Philadelphia Cream Cheese, Miracle Whip, Oscar Mayer and Kraft Singles. This year the agency was also awarded work for Kraft's Crystal Light brand.

"Kraft Foods decided to bring a fresh perspective to the way Lunchables communicates to its consumers and awarded the business to McGarryBowen," company spokeswoman Syd Lindner said in a statement. "We believe this move will strengthen Lunchables' communications with moms and better align Lunchables with overall Oscar Mayer marketing. We believe McGarryBowen, which is known for truly breakthrough marketing, is the ideal partner to help moms understand the innovations taking place in the Lunchables brand."

Kraft, along with other package food companies, has increased its advertising commitments during the recession, with the understanding that marketing helps hold the line on price increases necessitated by higher commodity costs. CEO Irene Rosenfeld has underscored her commitment to increasing the company's once comparatively paltry marketing spending, up to a goal of 8% or 9% of total sales, or about $3.4 billion.

For 2009, the company is projecting marketing investment of 7% of sales, even as media companies lower rates to sell their ad inventory.

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