As part of a consolidation of its $1.9 billion advertising business, Swiss food giant Nestle has decided to align several of its global categories into five of its multinational agency networks.
"The idea of the new concept," explains a Nestle spokesman, "is to appoint a lead agency per category or brand. Each of the lead agencies will work closely with the (respective) marketers to define and to help to realize a single business vision for the brand or category."
McCann-Erickson Worldwide becomes lead agency for Nescafe, Publicis becomes lead agency for culinary products and frozen foods, Lowe will be lead agency for sugar confectionery, J. Walter Thompson Co. will handle chocolate brands and Ogilvy & Mather Worldwide will handle chilled foods like yogurts.
Nestle has made no decision on its global pet foods category.
The new lead agencies "will not necessarily execute or develop the advertising for the category (or brand) worldwide," explains the company spokesman. "The lead agency has more of a consulting role."
He adds: "We believe it will lead to a greater shared ownership and accountability between our roster of agencies and the company."
None of Nestle's other agencies will be knocked off the roster, underlines the spokesman.
Dentsu for instance, was not assigned any worldwide category because of its lack of comprehensive international network. The Japanese agency however, will continue to play an important regional role. Nestle's specifically regional and local brands, are not affected by the overhaul.