Dairy co-op keeps Y&R but consolidates $17m account

SYDNEY: Australia's largest milk co-operative, Dairy Farmers, has retained the globally-aligned agency Young & Rubicam Sydney on the Danone brands, but will consolidate its A$30 million (US$17 million) ad account with Leo Burnett Sydney.

The milk, soft dairy and cheese brands were previously split between DDB Sydney, Burnett Melbourne, Oddfellows and Y&R.

Burnett Sydney, the only non-rostered agency to pitch for the business, will handle Dairy Farmers, Oak, Lite White, Shape, Ski, Coon and Cracker Barrel from July.

Dairy Farmers chief operating officer, Ian Parker, said: "The final decision was made purely on a commercial basis and will increase efficiencies and consistency in the way our brand values are communicated to consumers."

Burnett Sydney managing director, Troy Ruhanen, said the consolidation drive would continue among large clients. "Instead of having generalists across four agencies, you have one with a real depth of focus and expertise. For less money overall they're getting a far better level of service."

Dairy Farmers is also in discussions with Nestle about a joint-venture or strategic alliance in their yoghurt businesses. The combined business would give the duo market leadership in the A$500 million chilled dairy category.