TAIPEI: United Asatsu and Dentsu Commex failed to edge incumbent
agency Eastern Advertising off the Taiwan Beer account in a seven-way
pitch which included four small local agencies.
S.A.R.L, One Sun, Victor and Yipai Advertising had also pitched for the
NT$50 million (about US$1.4 million) account.
Eastern, which has handled the business since 1998, has only won a short
reprieve - its contract will be extended until year-end. Easter declined
comment, but is understood to have received written confirmation of the
win. The extension comes as Taiwan Beer's parent Taiwan Tobacco & Wine
Monopoly Board (TTWMB), a state-owned monopoly, moves towards
privatisation.
The pitch was widely talked-about in Taipei agency circles when the
board cut its commission structure from 15 to just five per cent. As a
result, several eligible multinational agencies - including J. Walter
Thompson - refused to compete for the business.
The discounted commission reflects a sharp decline in domestic beer
consumption due to Taiwan's sluggish economy and changing consumer
habits. This is believed to have led to a 28 per cent slump in overall
beer sales last year.
Taiwan Beer is believed to command an 80 per cent share of the island's
market.
