$15 Million Account Faces New Marketplace Challenges

By Published on .

SAN FRANCISCO (AdAge.com) -- Oroweat, a Western states bread brand long known for its whole grain ingredients, has changed advertising agencies as it gears up to face a raft of new marketplace challenges.

Bimbo Bakeries USA, a subsidiary of Grupo Bimbo, hired O'Leary and Partners of Newport Beach, Calif., as agency for its Oroweat, Francisco and Entenmann's brands following a review that included the incumbent on the account, Black Lab of Venice, Calif. That shop developed Oroweat's current tagline, "Bread Perfected."

Estimated $15 million
Spending was not disclosed, but billings were anticipated in the $10 million to $15 million range, according to executives close to the situation.

The move comes as competitors such as Wonder Bread, owned by International Bakeries Corp., emerged from bankruptcy with a bigger ad budget and a new ad campaign backing its first 100% Whole Grain Wonder bread.

Whole wheat sales rise
In the $6 billion bread market, sales of white breads have been declining while whole wheat sales are increasing in part due to obesity and nutrition concerns. Campbell Mithun, Minneapolis, handles the Wonder Bread campaign.

At the same time, Francisco Italian breads have faced competition from bakeries in grocery chains and, in some cities, from a growing number of artisan and specialty bakeries.

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