Kellogg's tears up agency roster

27 August 2009

MICHIGAN: Breakfast cereals giant Kellogg's is set to slash its agency roster from more than 30 names to just five or six, becoming the latest major marketer to seek significant consolidation during the downturn.

Kellogg's primary global creative agencies are Leo Burnett and JWT, but the firm's roster also includes Euro RSCG, Starcom, Rivet, Arc, Cole & Weber and Marketing Drive.

The company's global ad budget is the 29th largest in the world, exceeding $1 billion (£616m; €701m) according to Ad Age's latest ranking of advertising spend.

With brands such as Cocoa Krisps, Apple Jacks and Crunchy Nut Cornflakes in its portfolio, the 115-year-old firm reported revenues of $12.8 billion last year.

The new cost-saving initiative, known internally as "Project Silver," is part of a company-wide push to control costs and designate "preferred vendors," according to reports. It is believed to be the brain-child of the procurement division.

“On an ongoing basis, we have discussions across the broad remit of our partnerships regarding maximizing the effectiveness and efficiency of our operations and efforts," said a company spokesperson, adding that the “ongoing conversations are confidential."

Anheuser-Busch, Bayer and Emirates Airlines have taken similar decisions about crowded rosters in recent months.

Data sourced from Advertising Age; additional content by WARC staff