Kraft Heinz Is Reviewing $520 Million Global Media Account

Publicis Groupe's Starcom is defending in the review.

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The CPG giant's contract with Starcom expires later this year. Kraft Heinz

Kraft Heinz has instituted a review of its global media account, as its contract with Publicis Groupe’s Starcom is ending this year.

“Our contract with Starcom Worldwide is expiring this year, so Kraft Heinz is exploring opportunities for its global media planning and buying operations to ensure we are positioned for success in 2021 and beyond,” a Kraft Heinz representative said in a statement.

Starcom is defending in the review, with Omnicom Media Group also participating, according to sources with knowledge of the process. It’s unclear how the review will be impacted by the coronavirus crisis, which will presumably limit or prohibit travel and in-person meetings.

Starcom and Omnicom Media Group declined to comment.

This is the first formal media review for Kraft Heinz in years. The CPG giant consolidated its media account with Starcom back in 2015, following the Kraft Heinz merger. Kraft had sent media duties in the U.S. and Canada to Starcom back in December 2000.

In February, Kraft Heinz CEO Miguel Patricio said the company plans to cut the number of agencies it works with by half, while increasing its media budget by 30%. Kraft Heinz previously spent about $520 million globally per year on media, according to data consultancy COMvergence.

@ErikDOster Erik Oster is an agencies reporter for Adweek.