CUB moves from Mediacom after 17 years as AB InBev switches to PHD
Anheuser-Busch InBev’s Australian media account has moved from Mediacom to PHD, ending the agency’s 25 year relationship with Carlton and United Breweries.
Mumbrella understands Mediacom Melbourne resigned the account, and PHD will take over media duties for AB InBev’s CUB’s brands, including Victoria Bitter, Great Northern Super Crisp, Pure Blonde, Strongbow Classic Apple Cider and Crown Lager.
PHD has also won the AB InBev business for Vietnam and India as part of a wider global reorganisation of the brewer’s media accounts.
According to AdAge, Dentsu Aegis Network’s Vizeum will take over media duties from Mediacom in the US, Canada, Europe and Africa, WPP’s Mediacom will handle Mexico, Honduras, El Salvador, Argentina, Bolivia, Uruguay and several Caribbean countries, while Publicis Groupe’s Starcom will handle China, South Korea, Japan, Colombia, Peru and Ecuador.
MediaCom has had a successful year, winning the Victorian government media account two weeks ago, Jet-ski brand Sea-Doo’s media duties, Mars’ media duties in December last year and News Corp’s media account.
However earlier this year, the agency lost media duties for Pizza Hut. The loss of key client CUB will have a significant impact on the business.
A company spokesperson from CUB confirmed the local transition.
“Our decision was based on strategic and commercial criteria. We want to thank MediaCom for their work and partnership over the past 17 years. During this time we have worked together on a number of award winning campaigns,” the spokesperson said.
“We are excited to be working with PHD in Asia Pacific South, given their capabilities and passion for our business and our brands. As we evolve our media buying strategy and implement a more data driven approach, PHD is the best strategic partner to help us deliver this.”
The spokesperson said Mediacom Melbourne will continue to work with the brand until the end of the year, with PHD to commence work on January 1.
Mark Coad, CEO of PHD said the news was “incredible” for the agency.
“Growing up in the industry in Melbourne, this is, and always has been the client to work with,” Coad said.
“To have the chance to do that, and continue to grow our Melbourne office is a game changer for us. We can’t wait to make a valued contribution to their business.”
Commenting on the end to their long-standing relationship, a spokesperson for Mediacom told Mumbrella: “MediaCom have thoroughly enjoyed our partnership with CUB and have created some amazing work together, and as such, we would like to wish them every success in the future.”
Mediacom confirmed there will be no redundancies as a result of the change.
PHD’s clients include ANZ, Unilever and Volkswagen.
I love that media agenices always claim to win accounts based on brilliant thinking but claim to lose them on price…
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Well I’m sure the massive fee they’ve put forward on Vic Govt will more than cover the loss.
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@OpenMike – it’s always just price
MediaCom actually pulled out of this because they couldn’t agree to commercial terms/ prices and guarantees demanded of this client.
Such as guarantee me this media pricing and if you don’t get it, you pay the difference
Some agencies like PHD are happy to make that commitment and win the business. Others like Mediacom are not . That’s the market these days.
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Mediacom just got beaten by their own game.
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Maybe, but they’ll be running a very fine line after going very low with Vic Gov. This is why the MFA or a 3rd party needs to step in and set benchmarks, otherwise financial stability and sustainability in the media industry will be non-existent.
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Certain holding companies will do whatever it takes. Especially when their main brand can’t win a thing.
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Maybe not this time round, but Mediacom have been known to do this on other occasions. Others agency groups lost out of VIC Gov after they weren’t able to agree commercial terms as well.
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It’s simple, MCOM had already guaranteed CUB/SAB Miller pricing that had an effect on the whole agency (nationally). They had to do the same for VIC Govt but couldn’t do both due to VIC Govt’s volume. Whilst AB InBev was a big prize the spend is nothing like the $30m quoted. Can’t win ’em all, especially when you have to give away so much!
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