McCann Erickson has lost more of its business from longtime client Nestlé: The marketer has pulled U.S. advertising for its Coffee-Mate and Nesquik brands out of the agency’s L.A. office.
Nestlé is still finalizing details of where it will shift the accounts but it is expected they will move to another roster agency, sources said. Nestlé has been one of the L.A. office’s largest clients. Other remaining accounts are LifeLock and IHOP.
Last month, Cathy Saidiner, president of McCann Erickson L.A., resigned from the agency and has since joined L.A. digital agency Blitz in the same capacity. She was replaced by Richard Donohoe, who had been the lead N.Y.-based account executive on the agency’s U.S. business for Nestlé water brands. Saidiner’s departure is not necessarily the catalyst for McCann’s dismissal on the accounts—observers say Nestlé is very deliberate in making these changes and the agency would have been warned and given the chance to save the accounts.
In fact, in late 2010 Adweek reported that Nestlé was in the late stages of a search for new creative ideas for Nescafé, Nesquik and Nespresso. In September, McCann lost its global Nescafé business; and Nespresso, the company’s line of coffee machines and coffee, is now being handled in the U.S. by McCann Worldgroup sibling shop, The Martin Agency.
In 2011, Nestlé spent $26.4 million in U.S. advertising support for Nesquik and $25.6 million for Coffee-Mate, according to Nielsen. (Those amounts do not include spending for digital and business-to-business advertising.) McCann continues to work for those two brands in 30 countries outside the states.
While McCann has lost advertising for those two brands, the agency said it has been given additional responsibilities from Nestlé Waters North America. The agency will handle a new product assignment for Resource, a spring water packaged in a new recycled plastic bottle design which will launch the week of May 1 and initially be marketed in California. The agency has created a new unit, McCann Social Central, which is working on the launch. McCann has also been given strategic and creative duties for Nestlé Waters Direct's residential delivery business.
Nestlé has been one of McCann’s most-profitable marketers. The Switzerland-based company was one of the network’s top global clients and had previously generated more than $60 million in worldwide revenue to McCann Worldgroup. An agency rep declined to comment on specific revenue generated by Nestlé at McCan Worldgroup, but said, "Nestlé continues to be a key global account."