Philips fires Euro RSCG

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Philips Electronics said it is ending its 10-year relationship with Euro RSCG following a review and consolidating its estimated $600 million account at new agency DDB Worldwide and existing shop D'Arcy Masius Benton & Bowles, effective June 30.

News of the account shifts came as a shock to incumbent Euro RSCG, according to an agency spokeswoman, who said Euro RSCG only learned Dec. 20 that there had been a review.

Under the new contracts, DDB will handle Philips' estimated $300 million consumer electronics, semiconductor, components and branding work. D'Arcy Masius Benton & Bowles, which already handled the Norelco shaver line, adds lighting and medical products, such as Philips' recently acquired Sonicare electric toothbrush line; DMB&B's Philips work also is estimated at $300 million.

The consolidation is the result of a very quiet nine-month review, according to Ed Volkwein, senior VP-advertising at Philps. Although Mr. Volkwein said the review included Euro RSCG, an agency spokeswoman denied that Euro RSCG had been invited to participate or was even told of the review. The move comes as a blow to Euro and its Messner Vetere Berger McNamee Schmetterer/Euro RSCG, the shop behind Philips' consumer electronics advertising in the U.S. as well as its Jordan McGrath Case & Partners/Euro RSCG, which had handled the lighting work for Philips.

-Wendy Davis

Copyright December 2000, Crain Communications Inc.

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