Nestlé launches Review to consolidate part of its 633 million dollars the North American advertising business

In an apparent economy of effort, nestlé recently launched a review to consolidate part of its North American advertising business from four to six agencies, several sources have confirmed to Adweek.

Although the exact content of the review, it is currently unclear, it includes creative and digital duties on some of the biggest brands of nestlé. According to one source who worked on the account, this review mainly or exclusively for ready food.

Swiss confectionery, food and beverage conglomerate has completed its last extensive review in 2014 by trimming the registry of 20 Digital agencies to eight. One source with direct knowledge of the review said it will primarily attract those who have remained partners with other specialized stores potentially pitching to save some unspecified part of the work.

This man also claimed an entire review of the procurement unit, consisting of the external audit process, not a creative platform. A source told Adweek that the review so far proceeded “without the participation of the brand team,” adding, “they never told agencies.”

In the notification of some of these agencies and obtained, in particular, Adweek, nestlé explained the “process drivers” for the comment as such:

“In General, the selection process is collaboration between marketing, procurement, communications and digital centres of excellence. The main entrance was scoring sessions with each team of the brand, along with APRAIS and data Digital Agency evaluation and external third party (like the Forester) intelligence Agency. We summarized the data on the rating Agency grades to have a complete picture structures with multiple brand assignments. We have summarized the discussion, the Board and findings and coordinate with brand teams for any further changes. Ultimately, an overall assessment of marketing opportunities and performance drove the decision.”

When contacted by Adweek, a representative of nestlé, said: “We are always looking for ways to better operate and use our bodies. Despite the fact that periodic changes do occur, but we have nothing additional to share.” Representatives declined to comment on the current review.

“They meet with them [the United States] agencies to find out what their presence will,” said another source close to the case. “It’s the savings? I guess.”

Kantar Media reports that nestlé spent 633.4 million dollars to the paid efforts of the mass media in the United States in 2017, down slightly from the previous year, when he distributed slightly less than $ 700 million on advertising.

While it is not clear what kind of companies nestlé is “evaluation”, the company works with a number of independent and holding company-owned stores in North America. This list includes McCann and his Latin American marketing arm of Casanova”, ” J. Walter Thompson, Leo Burnett, grey, Ogilvy, FCB, Doner, scope and deep Focus.

Representatives of all the agencies either declined to comment or did not answer the journalists ‘ questions. The client representatives to clarify whether nestlé will work with agencies outside of their current roster.

Several sources refer to WPP as a potential winner in this review, noting that nestlé has strengthened its US production work with the Department of company Hogarth last year. Recently left CEO of wpp Martin Sorrell has also reportedly had a close relationship with the client’s management.

Company GroupM has won the Nestle U.S. media account in review 2013. An Agency representative declined to comment for this story.

Nestlé sales in recent months after several disappointing quarters, with reports attributing most of the growth in the US in pet food as consumers shift towards healthier habits. Another sign of this rotation, nestlé agreed to sell its confectionery business Ferrero in Italy in January of $ 2.8 billion.

The different brands cover confectionary, food and beverages and includes such famous figures as candy, coffee Mate, Haagen Dazs, tasty treats, Gerber, lean cuisine, Nesquik, frosted, Wonka and Purine.

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