As some folks hinted and our poll predicted, SC Johnson came down with its decision by month’s end and as a result, the Wisconsin-based giant has ended its nearly 60-year relationship with Draftfcb Chicago and is now splitting creative duties between Ogilvy and Energy BBDO. The SCJ biz is valued at approximately $800 million, give or take, and now, Crain Chicago Business is reporting that Energy will handle the Pest Control and Home Storage units for the brand while O&M (which will operate as an integrated team with fellow WPP shop, Group M) will handle Home Fragrance and Home Cleaning.
In a statement to Crain, SC Johnson says, “”It was a very difficult decision and we truly value the many contributions the Draftfcb team has made to the success of our business over a long-standing partnership.” The products under the “Family Company” umbrella include Windex, Pledge, Raid, Ziploc and Glade. So now, the question on the top of everyone’s heads we imagine is where does this leave Draftfcb, which just brought on a new CCO?
Well, Draftfcb CEO/president Laurence Boschetto offers his take, saying in a statement, “In looking at the highly professional way we have managed SC Johnson’s business over the years as well as the strong results we have helped the company achieve for many years, it’s difficult to understand this decision, but we obviously have no choice but to accept it. We wish our SCJ colleagues all over the world continued success as they build upon the very strong foundation that our two companies have collectively established.”
Boschetto continues, “It’s important to keep this situation in perspective. Our organization has grown significantly since our 2006 merger, and we’ve consistently been among the top performing networks for IPG. That growth has allowed us to substantially diversify our revenue base, making SCJ an increasingly smaller part of our global business over the past few years.”
Yes, we know it comes off like a saving face comment, but do you think Draft Chi can survive this?