Is Kellogg's US consolidation a prelude for Europe?(Brief Article)

JWT has cause for nerves after losing Kellogg in the US, Camilla Palmer writes

Last week J. Walter Thompson lost $100 million of its flagship Kellogg business to roster rival Leo Burnett, which grabbed the entirety of the US account formerly shared between the two.

In the UK, the split between the two agencies remains unchanged -- for now. JWT continues to handle the key brands Corn Flakes and Rice Krispies among others, while Burnett deals with All Bran, Pop-Tarts, Start, Rice Krispies Squares, Coco Pops, Honey Nut Loops and the Nutrigrain brands.

But while JWT will continue to handle the business in Asia-Pacific, Canada, Europe and Latin America, the change can hardly be seen as reassuring for the agency.

The move to consolidate the US account at Burnett means all brands currently handled by JWT in the US will be transferred in the next few months. Interestingly, these include the Kellogg flagship brands Corn Flakes and Special K, which were moved from Burnett for JWT to handle globally in May last year.

In return, Burnett picked up the global accounts for brands such as Frosted Flakes -- known as Frosties in the UK.

The Frosties account was a 3 million [pounds sterling] loss for JWT in the UK, and although Kellogg stressed at the time the agency had done nothing but "an outstanding job" on the brand, JWT admitted it was disappointed at its loss.