Eastern clings to Taiwan Beer after seven-way pitch

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