Coors Adds Agencies

Increased Coors spending could help the incumbent, but Deutsch and Arnold are expected to take a substantial bite out of Foote, Cone & Belding’s fees from the brewery’s $200 million business, sources said.

Deutsch, which plans to produce new Coors Light work by year’s end, may be getting the big gest boost, sources said.

Sources equated the agency’s win to an account that bills $80 million, a figure a Coors representative discounted. The agencies will be receiving individual assignments and participating in occasional shootouts, the representative said, making it impossible to assign a billings figure to the work.

Coors spent $120 million on Coors Light, which FCB and Deutsch/ LA will share, last year, per CMR. Arnold, Boston, and FCB will work on Original Coors, for which the brewery spent $40 million last year. FCB retains responsibility for all other Coors brands.

One source suspects the agencies will be in competition more often than the brewer’s letting on. “It’s going to be a jump ball every time,” the source said.

The deals with Deutsch and Arnold are thought to include retainers and bonuses based on how much work each agency produces, sources said.

FCB was working on its deal with Coors late last week, a process that began in the spring, sources said. FCB is expected to cut a similar re tainer and bonus deal on the business.

Coors’ billings could increase by 10-15 percent next year, sources said. The spending spike is thought to be why Coors thinks there’s enough work for FCB to maintain the 80-plus staffers it now has on the account.

Coors said it doesn’t expect FCB to cut staff on the brewery’s account despite the addition of two agencies to the roster.

Following creative presentations in July, Deutsch was in contract talks with Coors for weeks, the main sticking point being the amount of guaranteed money for the shop, sources said. CEO Donny Deutsch led negotiations. Arnold was also in talks through August.

Pitches from Arnold, led by president Fran Kelly, and Deutsch involved hypothetical case studies for various categories, including malternative beverages and light beer, sources said. —with Al Stewart and David Gianatasio