The pitch for the Kellogg's media account has entered final stages with the brand's incumbent agency Mindshare opting not to continue with the process.
Industry sources have revealed that Starcom and Carat remain in the race for the brand's media account, which went out to pitch in June.
PHD and Omnicom last month decided they would not participate in the pitch process.
At the same time the industry was buzzing about unrealistic terms. One source told AdNews the brief made it "almost impossible" to consider.
GroupM's agency Mindshare was unable to be reached at time of publication but it believed it bowed out of the pitch shortly after PHD and Initiative.
Kellogg's declined to comment. However, the brand's ANZ director of marketing and corporate affairs Tamara Howe had previously stated that assertions made about the pitch and its terms were "inaccurate".
Following industry backlash, which also included a call from Initiative global CEO Mat Baxter to "Ditch The Pitch", it is understood the Kellogg's pitch has become more "palatable".
Multiple accounts claim that while generally a client will come in with a low offer and there is often the ability to negotiate.
Many have agreed with Baxter's point of view as agencies look to steer away from contracts that include 120 day payment terms, razor thin margins and the signing away of all intellectual property.
"We will never do those pitches and we will never do 120 days. It's not happening and if I have to walk away from a pitch, I don't care who the client is," Baxter previously told AdNews.
"We just walked away from a huge opportunity. We're not doing it because at some point, you've got to go no."
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