Updated: WPP exits Coles pitch due to conflict, Accenture Interactive invited at group level
WPP has been asked to withdraw from the Coles pitch, as the retail giant continues its hunt for a bespoke agency model. It has now invited Accenture Interactive to pitch, Mumbrella can reveal.
This means that the list is back to three, with Omnicom and Publicis Groupe still in the running for one of Australia’s largest accounts, combining media, strategic and creative.
WPP out, Accenture Interactive in
Coles confirmed to Mumbrella that following WPP being asked to withdraw, consultancy Accenture Interactive has been invited to participate in the RFP at a group level. Accenture Interactive sits within Accenture, and owns creative agency The Monkeys, who is expected to be a part of the bespoke offering pitch Coles is seeking.
Accenture purchased The Monkeys in 2017 for $63 million.
The acquisition’s purpose was to strengthen Accenture Interactive’s customer experience capabilities, as well as the services Accenture Interactive provides to chief marketing officers and chief digital officers.
Accenture Interactive declined to comment. Mumbrella has enquired further about what this group model would look like for Accenture Interactive. It it opened a digital ad-buying division in 2018.
Coles’ decision comes as a statement issued to Mumbrella by Coles pointed to “a future conflict” for WPP. Mumbrella understands its production hub, Hogarth has entered into a deal with its cross-town rivals, Woolworths, precluding it from working with Coles on its integrated solution.
A Coles spokesperson told Mumbrella: “Coles is very much looking forward to the ongoing process of creating a new bespoke agency model to gain even greater synergies in the way its creative, media, and strategic work is performed. Coles requested that WPP no longer participate in the RFP after becoming aware of a future conflict which would prevent the agency working on the account.”
As part of the deal, Woolworths Group is engaging Hogarth to handle production duties for its subsidiary brands, Big W and Dan Murphy’s.
Woolworths and Hogarth have been contacted, but Mumbrella is awaiting a response at the time of publishing. WPP declined to comment.
With industry chatter and speculation pointing to a Woolworths media pitch later on this year, it is expected WPP will look to strengthen its relationship with Woolworths then. An industry source suggested that choosing production work for the subsidiary brands over the chance at Coles’ full bag would suggest WPP is confident something is on the cards.
The current Woolworths contract runs until later this year.
Coles is seeking a bespoke model that is “future-proofed” to deliver what the brand needs “not only today and tomorrow” but beyond that, Sam McLeod, general manager brand, digital and design, and who is also leading the search for a new group partner, told Mumbrella recently.
Inviting WPP, Omnicom and Publicis to the pitch, McLeod said came after the brand chose the three international groups after identifying them as those having the breadth and depth of experience and skills to service those needs, as well as having proven both domestically and internationally that they are capable of doing so.
Omnicom currently services Coles for both its media and creative duties, with DDB, TBWA and OMD on its current roster. OMD was appointed as media agency in mid-2016, replacing UM Australia.
Both DDB and TBWA joined Big Red in 2020. Big Red was the supermarket giant’s lead creative agency for a decade, with the relationship ending this year with Coles’ new model.
Coles asked each of the agency groups to pitch based on operational capabilities, not on creative ideas.
This article has been updated since publish, to highlight details regarding Accenture Interactive.
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Calum Jaspan was news editor at Mumbrella, based in Melbourne. He was also the producer and host of the Mumbrellacast. He left Mumbrella in May 2023.
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This playing out publicly the way it has (with the integrated pitch, in the past with tbwa being appointed, ddb, big red being moved on, marketing staff entering personal awards) is embarrassing for a business who never used to conduct marketing business like this.
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I think you’ll find the CMO’s previous career highlight was working with David Droga at Droga5 who is now also part of the Accenture Interactive.
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Agree – this is an uncouth and seemingly unwieldy approach to finding a marketing partner.
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How is it the fault of Coles that it’s playing out publicly? It seems like they are responding to it being leaked to media rather than releasing statements proactively?
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