KraftHeinz’s $US520 million ($AU$890 million) global media account is reportedly up for pitch.
The CPG giant has instituted a review of the account, with its contract with Publicis Groupe’s Starcom ending this year.
“Our contract with Starcom Worldwide is expiring this year, so Kraft Heinz is exploring opportunities for its global media planning and buying operations to ensure we are positioned for success in 2021 and beyond,” Kraft Heinz said in a statement.
Starcom, with whom the media media account was consolidated in 2015 following the Kraft Heinz merger, is defending in the review.
Nearly all of the major holding companies are expected to compete in the pitch, including WPP, Omnicom, Publicis and Dentsu.
Last month, the the company's CEO Miguel Patricio said on the company’s Q4 earnings call that he plans to cut the number of agencies it works with by half, while increasing its media budget. This followed a difficult financial year, which saw a 2.7% drop in KraftHeinz US sales in 2019.
"We are also finding efficiencies in nonworking marketing, such as fewer research dollars necessary for the more concentrated innovation pipeline I just mentioned as well as cutting the number of agencies we employ in half," he said.
"As a result, we plan to increase working media, what consumers actually see, by 30% in 2020 with even greater increases behind the brands that are the biggest drivers of our profitability."
AdNews has contacted Starcom for comment.
Have something to say on this? Share your views in the comments section below. Or if you have a news story or tip-off, drop us a line at adnews@yaffa.com.au
Sign up to the AdNews newsletter, like us on Facebook or follow us on Twitter for breaking stories and campaigns throughout the day.