The Kellogg Co. is shifting creative duties on key brands in Europe and Latin America from JWT to Leo Burnett, the client has confirmed.
The shift leaves WPP Group's JWT with Kellogg business in just the Asia-Pacific region.
A client representative said the move was designed to "optimize our marketing model," adding that only Burnett and JWT were considered for the business.
"The consolidation of our North American, European and Latin American brand-building support with Leo Burnett will be operational by year-end for all brands in our ready-to-eat cereal, snacks and frozen food businesses," said the rep, in a statement.
Sources said that the shifting brands include Corn Flakes (in the U.K., Italy, Spain, Denmark, Mexico, Venezuela); Special K (U.K., Italy, Spain, Denmark, France, Venezuela, Mexico); Extra (France, Italy, Spain, Mexico); Cocoa Krispies (Venezuela, Mexico); and Crunchy Nut (U.K.).
JWT's loss is significant, with revenue on the business estimated at $15 million. In addition, Kellogg becomes another longtime client that has turned away from JWT. In 2007, the agency's Chicago office lost all of its Kraft business, though the shop kept brands in overseas markets.
Burnett, meanwhile, expands its relationship with a cornerstone client. The Publicis Groupe shop is already Kellogg's lead creative agency in the U.S.
JWT will retain creative duties on Special K (in Japan and India), Frosties (Japan and India) and Corn Flakes (India), among other brands, sources said.
JWT and Burnett declined to comment.
This story updates an earlier post with client confirmation and other details.