Kellogg’s appoints Zenith to media account
Kellogg’s pitch for its media account has drawn to a close, with the FMCG brand appointing Publicis Media’s Zenith to do its strategy, planning and buying, Mumbrella can reveal.
The pitch was marred by controversy with claims the brand had unrealistic expectations, and agencies being asked to agree to unfair payment terms. The appointment of Zenith marks the end of a 35-year relationship with Group M’s Mindshare.
Kellogg’s pitch has been in the spotlight
Mumbrella understands Mindshare ended the relationship with Kellogg’s and declined to partake in the pitch. It is also widely understood IPG Mediabrands and Omnicom agencies refused to partake in the pitch, with Initiative’s global CEO Mat Baxter taking to the stage at Mumbrella360 in June, calling out the process which was underway.
“Just in this market, right now, there is a pitch going on for a CPG [consumer packaged goods] client. The mandatory requirement to participate in that pitch, you’ve got to agree to 120-day payment terms and, if you don’t, you’re out. And I want to call out publicly [fellow media agencies] Omnicom, PHD, who took a stand with us on not participating in that pitch,” Baxter said at the time.
“The really good agencies have got to start saying no.”
These claims were vehemently denied by Kellogg’s director of marketing and corporate affairs for ANZ, Tamara Howe, who said Baxter’s statements, and some of the surrounding industry scuttlebutt, did not reflect the Kellogg’s process, or the value it places on its agency partners.
“I can’t speak for other clients, however Mat’s comments do not reflect the process at Kellogg ANZ. We get many requests to work on our business so I think a ‘pitch’ process provides a structured, fair opportunity,” Howe told Mumbrella earlier this month.
Howe: Agencies need to lean in to win business
“We typically shortlist between three and five agencies in our pitch process and tend to undergo two to three rounds. We take a collaborative approach where we’re also involved along the journey.”
And now, Howe says, as the brand’s 35-year relationship with Group M’s Mindshare draws to a close, she is excited to partner with Zenith.
“The Zenith team should be proud of the work they brought to the table,” Howe said in a statement to Mumbrella. “They are a great group of people, and we look forward to collaborating with them.”
Nickie Scriven, CEO of Zenith, also sung the brand’s praises.
“Throughout the process, the Kellogg’s marketing and procurement teams have been extremely engaged, and committed to investing in an open and collaborative relationship,” she said.
“We’re delighted to start this journey with Kellogg’s and to being a trusted business partner focused on growing their much-loved household brands.”
Jonny Cordony, Zenith’s general manager in Sydney, added: “At Zenith Sydney, we’re very excited to be working with Kellogg’s. I’m personally proud of the agency and the team who deserve a huge amount of recognition for the quality of work produced.”
Zenith will be undertaking the strategy, planning and buying for Kellogg’s brands including Corn Flakes, Just Right, Nutri-Grain, Special K, Coco Pops, All Bran, and Pringles.
Are we supposed to congratulate Zenith on winning the account that no one wanted in the first place? Perfect example of a desperate agency saying yes when really the industry should stand together, fight for their value and say no.
User ID not verified.
Would this type of industry-backlash to a major brand be detrimental to the future career prospects of those at Kelloggs?
Perhaps fleshpeddler will enlighten us
User ID not verified.
Poor payment terms is one thing. Would love to know what rates Publicis have promised! But in a softening market they may just get lucky…
User ID not verified.
Feels like everyone is a loser here. The “ditch the pitch” crowd look childish, the client looks like they have made a decision on price (when they probably haven’t) and the winning agency looks desperate. Sad day for our industry all round….
User ID not verified.
That old saying, ‘wherever you go, there you are’. So, while Kellogg’s may like to think that changing media agency partners (after 35 years, so you’ve got to give them that) will make a substantial difference to the quality of media output they receive, it won’t. Because they’re still Kellogg’s. But maybe their procurement team stretched those payment terms closer to 120 days, so who gives a toss?
User ID not verified.
“Agencies need to lean in to win business” replace the over used term “lean in” with “bend over” and you’re right on the mark.
User ID not verified.
Good luck Zenith with the most poisoned of poisoned chalices. This is the type of account that kills an agency.
User ID not verified.
Excellent win guys!
You beat the best of the best, oh wait.
User ID not verified.
I’m no huge fan of ZO or Kellogg’s, but some of these comments are poor form. ZO can run their business how they want, take what ever margin they want and Kelloggs have every right to run their media and pitches how they want. Neither are responsible for the whole fucking industry. It’s called competition.
User ID not verified.
Agreed. This industry loves throwing vindictive, anonymous jibes.
Good luck to Zenith, hopefully you guys have better luck than the previous incumbent.
User ID not verified.
Scabs
User ID not verified.
On good terms of business.
The competitors dropped their fees in the last week (to ridiculous levels) but the client stuck with the team with the best FMCG smarts in market.
(I don’t work at Zenith but I am much more informed than other commentators on this thread.)
User ID not verified.
HAHAHAHAHAHAHAHAHAHAHA…
HAHAHAHAHAHAHAHAHAHAHA
User ID not verified.
Carat ?
User ID not verified.
The writing is on the wall. The industry is not sustainable with advertisers increasingly screwing agencies and their people to the wall.
User ID not verified.
120 days is disgraceful. The industry is not sustainable long-term and yet agencies continue to drop their pants to win the billings game even if it means running business at loss… Where are the business minded media people at? At what cost?
User ID not verified.