Publicis out of Sara Lee Advertising Review

Element 79 and TBWA Remain in Battle for $80 Million Account

By Published on .

CHICAGO (AdAge.com) -- Publicis, New York, is out of the running to become Sara Lee's primary food-and-beverage agency, leaving Omnicom siblings Element 79, Chicago, and TBWA/Chiat/Day, Playa del Rey, Calif., to battle for the $80 million account, according to a Sara Lee spokesman.
Sara Lee is in the midst of a restructuring that will create a separate food-and-beverage division.
Sara Lee is in the midst of a restructuring that will create a separate food-and-beverage division.
A Publicis spokeswoman confirmed that the shop withdrew from the review, but declined to elaborate.

Sara Lee restructures
Sara Lee announced the consolidation in March amid a major corporate restructuring that includes plans for a separate food-and-beverage division. The restructuring is intended to boost the marketer's profit margins to 12% from 7% by shedding a wide range of businesses that account for about 40% of Sara Lee's revenues, putting far greater importance on the performance of the food-and-beverage unit.

It could take a while before a final decision is reached in the review, said the Sara Lee spokesman, who added the company was treating the battle between roster shops like a marathon, not a sprint.

Element 79
Currently, Element 79 handles creative duties for Sara Lee's Hillshire Farms, while TBWA works on the Jimmy Dean, Ballpark Franks and Senseo coffee.

Publicis will continue to handle creative duties for the conglomerate's branded meat and bread products through a transition period.
Most Popular