Bendel ditches Publicis.(Rick Bendel)

Asda marketing chief dumps his former agency and hands pounds 44m account to Fallon.

There are few less welcome calls just three weeks before Christmas than one which informs an agency it must defend a pounds 44 million account that it has held for 17 years.

Publicis was shocked to learn that its defence had been unsuccessful: Rick Bendel, the former chief operating officer of Publicis, and now newly installed marketing director of Asda, has ditched his old colleagues in favour of its sibling agency, Fallon.

Publicis and Fallon went head to head for the Asda creative account the week before Christmas. Both advocated the dropping of the long-running 'Asda Price' positioning, the familiar theme tune and the back pocket-patting ending.

Bendel presented the pitch ideas and his strategy to Asda bosses on the Friday before Christmas. He told Publicis of his decision this Wednesday; Fallon heard the good news from Campaign shortly after.

At Publicis, Bendel had been wedded to the Asda business since the early 90s. When he left, many at the agency felt his move would cement the relationship, not undermine it. But the decision to pit Publicis against Fallon was one of the first Bendel made after taking up his new role in November last year.

It is a bitter blow for Publicis. A source says the agency was prepared to lose a portion of the Asda account - perhaps the George clothing line - but was totally unprepared for the loss of the entire business.