There Are 4 Big Winners in Kraft’s Agency Consolidation

Their gains come at the expense of 8 shops

Some pretty good agencies are getting swept out in Kraft's move to consolidate creative responsibilities on its brands at four main roster shops.

Gone are Droga5, Wieden + Kennedy, The Martin Agency and TBWA's Being, which handled brands such as Cracker Barrel, Velveeta, Stove Top and Planters Nuts. Also eliminated were Ogilvy & Mather, Roberts + Langer DDB, VSA Partners and Lopez Negrete Communications, which created multicultural ads.

Many of those shops were hired before Kraft spun off its snacks business into Mondelez International and when current Mondelez chief marketing officer Dana Anderson was a top marketer at Kraft. Under Anderson, a former agency leader, Kraft diversified its agency roster in a bid to get new blood on legacy brands.

Managing that many shops, however, can be unwieldy, particularly when each handled just a few assignments. Ogilvy, for example, worked on Nabob and Tassimo in Canada and Roberts + Langer handled Philadephia Cream Cheese in the U.S.

Also, two years after the spinoff, Kraft is a "more focused company," said a company representative, who added that the consolidation was about "fewer, deeper relationships." And, needless to say, there's a significant cost savings in employing fewer shops.

The rep also emphasized that "none of these agencies are exiting due to poor performance." That, of course, is small consolation to anyone losing business, particularly from a major marketer like Kraft.

The big winners in the consolidation are MDC Partners' Crispin Porter + Bogusky, Dentsu's mcgarrybowen, Publicis Groupe's Leo Burnett and WPP Group's Taxi, current roster players who will take on the dozen or so brands that the outgoing agencies are shedding.

Where each brand lands, however, won't be revealed until next week. But now, instead of employing a dozen creative agencies, Kraft will have a core four.

Recommended articles