Burnett's gain appears to be JWT's pain. At the outset of the
review, Kellogg indicated to agencies it hoped to cut its roster to
about five shops from around 30. The two busiest of those 30 shops,
by far, have historically been Leo Burnett and WPP's JWT. Prior to
the consolidation, Burnett worked in 32 countries, including the
U.S., and JWT toiled in 21.
A spokeswoman said the "majority of our business" will be
conducted with four shops as a result of the consolidation --
Burnett, JWT, Millward Brown and TNS -- but that the company may be
"working with separate digital and below-the-line agencies as
The shift seems to bounce JWT out of a number of markets where
it had been working: Colombia, Chile, Venezuela, France, Italy,
Spain, Benelux (Netherlands, Belgium, Luxembourg), the Nordics
(Sweden, Norway, Denmark, Finland) and the U.K.
JWT, for its part, will be receiving Kellogg's consolidated
business in the Asia-Pacific region, which is likely small
consolation considering it already had the work in such major
markets as Australia, China and Japan.
"We've enjoyed a long-term, successful partnership with JWT in
Europe and Latin America," a Kellogg spokeswoman said in a
statement. "This decision is not a reflection on the quality of
their work, but rather reflects the needs of our business to have
greater alignment across our marketing model moving forward. While
changes of this nature are never easy, we believe greater alignment
across our marketing model is critical in helping us achieve
best-in-class strategy and execution."
It wasn't immediately clear what the impact on Kellogg's smaller
agency relationships would be. In the U.S. alone, Kellogg works
with Rivet, Arc, Cole & Weber, Marketing Drive, Amazon
Advertising, Lapiz and
WonderGroup on a mix of creative and below-the-line functions.
handles its media buying and planning.
~ ~ ~
~ ~ ~CORRECTION: An earlier
version of this story incorrectly stated that Kellogg's decision to
consolidate most of its global advertising chores with Leo Burnett
was part of the company procurement-driven Project Silver
initiative to identify preferred vendors and cut costs. A Kellogg
spokeswoman said the Burnett decision was made independent of that
Contributing: Rupal Parekh, Emily Bryson York