Burnett to repitch for Woolworths deal

SYDNEY: One of Australia's biggest advertising accounts, Woolworths supermarkets, worth in excess of A$65 million, is up for grabs. Australia's largest grocer and second largest retailer has called for expressions of interest from agencies, including long-time incumbent Leo Burnett Connaghan & May. The company is expected to make a short list in the next few months. Burnett has held the account since 1995 and helped develop Woolworth's current 'Fresh Food People' campaign. Its managing director, Troy Ruhanen, is confident the agency will retain the business. Woolworths warned Burnett that the account would be reviewed more than a year ago. "Woolworths is reviewing every facet of its business. The fact that is has taken this long to get to advertising is a positive sign," said Ruhanen. At a time when even the most stable agencies are retrenching staff, few shops can afford to lose an account of this size. Woolworth's annual advertising expenditure places it alongside major brands such as McDonald's. Ruhanen said the advertising review was part of a large-scale cost-cutting exercise by Woolworths called "Project Refresh", which began more than two years ago and aimed to save money through nationalised buying and improvements in its distribution network. Since implementing the project in 1999, Woolworths has reported a 17.6 per cent rise in 2000/01 net profit of $428.4 million from $364.1 million the year before. It is expected to sign a three-year contract with the winning agency.

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