Woolworths rejects rumours of a one year contract on media pitch

woolworths logoOne of Australia’s biggest media spenders Woolworths has moved to quash industry rumours that the terms of its media pitch would be changed from a three year contract to a one year contract.

Speculation about the $240m media pitch had been growing after The Australian, last week, ran an article which claimed Woolworths would reappoint incumbent Carat but only for a one year contract, instead of the three year contract that had been indicated when the pitch was first announced.

The article raised eyebrows among many in the industry, given that the pitch has seen a number of agencies invest hundreds of staff hours and tens of thousands of dollars in preparing and presenting. However a spokesman for Woolworths today told Mumbrella: “There has been no change to the pitch.”

As Mumbrella revealed last month, the final shortlist sees incumbent Carat facing off against OMD and MediaCom for the main account, with independents Match Media and Bohemia also on the shortlist as the retailer looks to find a support agency to help with strategy on the account.

IPG Mediabrands is not involved in the pitch due to a conflict with UM being rival Coles’s media agency.

Mumbrella understands the review is still being run by Helen Lecopoulos who moved from McDonalds to Woolworths back in November, despite the appointment in March, of former Coles marketer Tony Phillips to be chief marketer for the supermarket.

It is understood the review is being handled by procurement with Phillips being part of a broader panel that includes Woolworths’ main grocery businesses as well representatives from other brands such as liquor businesses Dan Murphy’s, BWS, ALH, Langtons and Cellarmasters.

Nic Christensen 


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