Coke drops DY&R and Saatchi in realignment

MANILA: Ace Saatchi & Saatchi and Dentsu Young & Rubicam have emerged as the biggest casualties in a review of roster agencies handling Coca-Cola Philippines' non-carbonated drinks brands, which are expected to spend a combined budget of at least US$2.4 million this year.

The biggest winners were Hemisphere Leo Burnett and Dentsu, which between them took the lion's share of the assignments.

Burnett snatched the Magnolia Fruit Drinks, Fun Chum and Junior Juices from Saatchis, while Dentsu grabbed the Wilkins Mineral Water assignment, alone worth $1.2 million, from DY&R.

DY&R had some consolation in the form of Ponkana, which it took off local agency Singson Lascano Group (SLG).

Image Dimensions held off Burnett, DY&R and SLG to retain the 8 O'Clock juice brief.

There was no review of the media planning and buying account, which will remain with Universal McCann.

The shake-out comes almost a year after San Miguel Corporation took back control of the soft drinks giant in the Philippines by buying out Australia-based Coca-Cola Amatil in a US$1.1 billion transaction.

Over the past few months, San Miguel and Coca-Cola have attempted to further strengthen their grip on the multi-billion dollar beverage industry in the Philippines by purchasing a majority stake in Cosmos Bottling Corporation and buying Sugarland Beverage, whose product portfolio includes the Magnolia brands.

High-level business sources said the changes in the agency line-up reflected a shift in the political agenda of the drinks giants.

However, agencies involved in the review said they were asked to focus on creative and strategic considerations with the objective being to revitalise all the brands in Coke's non-carbonated portfolio in every segment they operate it.

Hemisphere Leo Burnett managing director March Ventosa said of the pitch for the Magnolia brands: "We were tasked to determine a future direction for these newly-acquired brands and gave a recommendation that respected the role of each brand in the portfolio and its market opportunity."

Ventosa said that this meant getting to the heart of the brand proposition, which was achieved through the deployment of the agency's brand belief system.

He said the system "is anchored on the mission of converting buyers into believers.

"As we approached the three brand pitches, it was clear we needed to provide a portfolio approach to managing each of the brands and then positioning them. The brand belief system provided a clear direction for how we were to address this challenge". Major campaigns will be rolled out in the summer, while new non-carbonated products will be launched some time in the second quarter, sources said.

- Additional reporting by Lee Chipongian.