Gut is launching its first vertical, Gut Design.

The offering will be led by Murilo Melo, previously executive creative director of Gut São Paulo, who was named global head of Gut Design. Melo’s prior position will be filled by Pedro Araujo, who joins from DDB Chicago, where he was creative director.

The offering, which will begin with 20 employees, will be led out of the São Paulo office. The practice will be utilized across the network’s offices in Miami, Buenos Aires, Toronto, Mexico City, Los Angeles and Amsterdam.

Gut Design is already working on projects for the following clients: Anheuser-Busch InBev Korea, Mercado Livre LATAM and Spaten in Brazil.

São Paulo had been leading the way in design and craft for Gut, said Gut Founder and Creative Chairman Anselmo Ramos, who noted that Melo is known within the agency as “Craft King.” “At one point, we said, ‘We have to take this more seriously and create a structure offering because clients are really interested in design and saying it’s so important.’”

An increase in design-centric projects prompted a need for an offering, Ramos said. He believes the design offering can also act as a gateway into the rest of the Gut network for clients.

Companies looking to acquire agencies have cited design capabilities as being particularly valuable.

The creation of Gut Design marks the first significant move from Gut since consulting group Globant Group bought a majority stake in the agency last November. 

“Everything is faster now because we have their support for whatever we need,” Ramos said. 

The offering is based on a “Beauty Inside Out Principle,” which will inform the agency’s process around design work.

“The ‘Beauty Inside Out Principle’ serves as a guidance to search into the core essence of a brand, uncovering unique truths and narratives,” Murillo said. “These insights will then inform our design process, ensuring that every solution we craft is not only aesthetically appealing but also deeply aligned with the brand’s authentic identity.”

Gut will retain its own design agency, &Walsh, which spearheaded Gut’s new visual identity launched last year, Ramos said. &Walsh has been working with Gut since before Gut had any clients. 

“Our first investment as an agency was design,” Ramos said. “That was a very clear signal that we meant business that we’re taking this seriously.”

Gut is exploring other potential verticals, including within PR, content and media, Ramos said.