Frito-Lay Krafts Frankel Exit

Just six months after Kraft Foods pared its roster of promotions shops to seven, the list has been further reduced with the resignation of Frankel & Co.
Frankel dropped Kraft after taking on Frito-Lay, which consolidated its estimated $100 million promotions budget at the Chicago agency in February.
Kraft, headquartered in Glenview, Ill., shifted the brands handled by Frankel–dips, Philadelphia cream cheese, Kraft Macaroni & Cheese, Miracle Whip and Kraft Mayonnaise, as well as cross-brand meal promotions–to three roster shops: Davidson Marketing and East/West Creative, both Chicago, and the Ryan Partnership, Chicago and New York, according to a company representative.
Kraft said it did not have a problem with Frankel’s Frito-Lay relationship. But Plano, Texas-based Frito-Lay did not want to co-exist at Frankel with Kraft, which it sees as a competitor at the supermarket, according to sources. Frankel said the switch was made because of “recent business opportunities” that made it “no longer possible to expand the relationship in a way that is necessary to meet both Frankel and Kraft’s business needs.”
Spending levels clearly were another factor. Frankel had only a portion of the estimated $100 million in agency fees Kraft offers on consumer promotions; it now handles Frito-Lay’s entire account, with billings estimated at upwards of $100 million.
Executives at Frito-Lay could not be reached for comment.
Frankel first worked for the company last summer on Cracker Jack, and was awarded the entire promotions business following a review that included incumbent TLP, Dallas, in January.
Frankel joined Kraft’s roster in August when the company cut its promotions roster from about 30 shops to seven.
Kraft spends about $600 million annually on consumer promotions.