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After bottom-line Brit takes over, Nestlé switches $700m. ad account

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By Noel Young, Correspondent

April 8, 2013 | 2 min read

Nestle's U.S. division has awarded media-planning and -buying duties reportedly worth around $700 million to WPP's Group M. The business was previously with Zenith of the Publicis Groupe.

Paul Grimwood: Boss from UK

Nestle launched a review four months ago with an emphasis on cost savings, following the appointment of Paul Grimwood, formerly chief of Nestlé U.K. and Ireland and known for his bottom-line focus, as CEO of Nestlé USA in August.

Many agency observers expected the "no-nonsense Yorkshireman, would waste little time finding efficiencies and beefing up sales in the company's largest market," said Adweek.

Group M will be responsible for Nestle Nutrition, Nestle Health Sciences, Nespresso USA, Nestle Waters North America, Nestle Purina PetCare and Nestle USA. The agency will service the account from its New York and Los Angeles offices.

The brands include DiGiorno, Stouffer's and Lean Cuisine

“Our decision to award the business to GroupM was based on a strong combination of factors including strategic planning, digital acumen, team strength and buying efficiencies,” said Alicia Enciso, Chief Marketing Officerf for Nestlé USA .

“We will immediately initiate a phased transition of all U.S. businesses, and look forward to working with GroupM to prepare for upfront media negotiations and 2014 planning. "

Encisio added,"We thank Zenith for their years of excellent work on behalf of Nestlé.” The shift is a major loss for Zenith who did not comment.

According to Nielsen, Nestlé spent $691.6 million in U.S. measured media in 2011, not including digital spending compared to $798.3 million in 2010.

The United States is Nestlé S.A.’s largest market with combined sales in the United States totaling more than $25 billion in 2012.

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