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Download .pdf of P&G Announced Plan

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CINCINNATI (AdAge.com) -- Procter & Gamble Co. today announced a sweeping realignment of its $3.8 billion global agency roster that will end its

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Fri: Breaking News
Move Comes as Agency Loses Major P&G Accounts

decades-old relationship with Havas' Arnold McGrath Worldwide.

The realignment sends new work to Publicis Groupe and Grey Global Group and redistributes assignments of soon-to-be-shuttered D'Arcy Masius Benton & Bowles, mainly within Publicis Groupe.

Billion-dollar brands
Publicis Worldwide will pick up two of P&G's billion-dollar global tissue-towel brands, Bounty paper towels from Arnold McGrath and Charmin toilet paper from D'Arcy. It will also get Puffs facial tissues and Tempo dry wipes from D'Arcy. Publicis' Leo Burnett picks up Arnold's Era account, which joins the Cheer and Gain brands already handled by the agency's Toronto office. Overseas, Burnett also picks up the Fairy laundry detergent brand from D'Arcy.

Grey Global gets the rest of Arnold McGrath's P&G business, including the global Zest personal wash account and Ace detergent in Europe. (Grey loses the Camay brand in Latin America to Burnett; Grey previously handled Ace bleach and sibling brands in Latin America.) Grey also picks up from D'Arcy Torengos tortilla chips, which, along with Pringles, will give it all of P&G's snack business.

Pat McGrath cited
"We are grateful to Arnold McGrath, particularly Pat McGrath, for the enormous contribution they have made to our business," said Mark Ketchum, P&G's president global baby and family care, in a prepared statement. "Arnold McGrath helped us build Bounty into one of the company's great brands over almost two decades, in addition to strong work on Zest and Era. The decision to consolidate all of our business at Grey and Publicis was difficult because of this long and successful relationship."

The brands at Arnold McGrath received $81.2 million in measured media last year, according to Taylor Nelson Sofres' CMR. Procter had been one of Arnold McGrath's top three accounts in New York.

Almost all of D'Arcy's accounts will remain within Publicis, divided among Saatchi & Saatchi, Leo Burnett, Kaplan Thaler Group and Publicis Worldwide, which joins P&G's roster for the first time.

Kaplan Thaler
Kaplan Thaler joined P&G's roster for the first time earlier this year, following P&G's acquisition of Clairol; the agency had the Clairol Herbal Esssences account. The agency now picks up D'Arcy's P&G home-care accounts and staff, including Swiffer and Dawn dishwash detergent. Leo Burnett, with which Kaplan

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has worked closely on global accounts, including Herbal Essences, will pitch in on overseas assignments for the global brands.

Drug brands
The Luvs diaper brand moves from its longtime home at Burnett to Saatchi, where it joins P&G's major global diaper brand Pampers. Saatchi will also pick up $200 million-plus oral-care business from D'Arcy, including Crest, Scope, Fixodent and two European brands. But most of the rest of P&G's drug business goes to Publicis Worldwide, which picks up DayQuil/NyQuil, Pepto Bismol, Vicks, Thermacare, Metamucil and the anticipated over-the-counter conversion of Prilosec.

P&G's Folgers and Millstone coffee brands, formerly with D'Arcy, join the company's other beverage brand, Sunny Delight, at Saatchi. The Always feminine protection business moves from D'Arcy to Burnett, which also will handle the Whisper brand along with Publicis' Beacon unit overseas.

"The realignment will give [P&G] more pricing power with two networks, more control over conflicts and the ability to demand the best creative," one knowledgeable executive said.

D'Arcy's demise
The shift results from Publicis' decision to shutter D'Arcy following its recent acquisition of the agency's former parent, Bcom3 Group. D'Arcy handled more than two dozen Procter brands, including powerhouses Crest, Folgers, Always and Charmin, and is expected to cease operations by the end of the year. It has been a P&G agency since 1941.

Chicago's Leo Burnett, another former Bcom3 agency, has worked for P&G since 1952, handling Tampax, Cheer and Gain detergents and Secret antiperspirant. Saatchi, a roster shop since 1954, has handled brands including Olay, Tide, Pampers and Sunny Delight.

Grey Global's Grey Worldwide, on the roster since 1956, handles Cover Girl and Max Factor cosmetics, Pantene shampoo and Downy fabric softener.

P&G's 2001 U.S. measured ad spending was $1.7 billion, according to CMR. Worldwide, the company spends $3.8 billion.

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Lisa Sanders contributed to this report.

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