KFC has named MullenLowe as its U.S creative agency of record following a hotly-contested review that began in September. New York-based Fig was believed to be the other finalist in the pitch, which was conducted by Select Resources International and was winnowed down from a range of agencies that included Johannes Leonardo, FCB and Arnold. Wieden+Kennedy previously held the account since 2018.

KFC confirmed the win. MullenLowe and Fig weren’t immediately available for comment. 

This news comes a month after Publicis' Spark Foundry was named KFC’s lead media agency following a separate review that included WPP’s Wavemaker along with Interpublic Group of Cos.' UM.

The U.S. is a critical piece of the chicken chain's overall business, accounting for 18% of KFC’s sales in 2020. It ranks just behind China, its largest market, with 27% of sales. The Yum Brand chain's U.S. systemwide sales are on the rise: They increased 11% in the first six months of 2021, while same-store sales, a key metric that tracks performance at longstanding locations, rose 12%. Third-quarter U.S. same-store sales rose 4%.

A big question that remains is whether KFC's iconic Colonel Sanders character will remain a part of the brand’s identity moving forward as the chan looks to attract a millennial audience.

KFC has been decreasing its advertising budget over the past few years. For the year ending in September 2021, the brand spent $98.4 million in U.S advertising, down from $116.6 million the year prior, and $162.6 million in 2019, according to Kantar.

Last month, KFC rolled out its new plant-based “Beyond Fried Chicken” offering nationwide with the help of YouTube star and influencer Liza Koshy. In November, KFC appointed Nintendo veteran Nick Chavez as its new chief marketing officer following the departure of Andrea Zahumensky in April.

This is a significant win for MullenLowe, which was named creative agency of record for TJ Maxx last year. 

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