JWT scoops $20m Nestle sweets deal

<p>TOKYO: Nestle has realigned its confectionery business in Japan </p><p>with J.Walter Thompson, dropping Dentsu and Hakuhodo, which handle the </p><p>US$5 million Crunch and $15 million KitKat business </p><p>respectively. </p><p><BR><BR> </p><p>The Polo brand will remain with Hakuhodo Lintas, but the bulk of the </p><p>business will move to JWT on September 1. "We have simply decided to </p><p>follow international alignment policies for the brands," said a Nestle </p><p>spokesman. </p><p><BR><BR> </p><p>For Dentsu, the shift is a double blow. Nestle was one of its most </p><p>prized international accounts for more than 30 years and was seen to </p><p>offer an avenue for for the network to expand outside Japan. </p><p><BR><BR> </p><p>The agency risks losing other brands if Nestle decides to follow </p><p>international alignment policies in other categories. </p><p><BR><BR> </p><p>Industry sources are speculating that multinational agencies stand to </p><p>gain if Nestle and other Western advertisers follow global alignment </p><p>policies. </p><p><BR><BR> </p><p>In the past, international advertisers disregarded these directives in </p><p>Japan - especially when confronted with the media and creative strength </p><p>of a Japanese agency like Dentsu. </p><p><BR><BR> </p><p>Dentsu is refusing to concede defeat and is reportedly working to </p><p>reverse Nestle's decision. </p><p><BR><BR> </p><p>The loss of Nestle is the second blow suffered by Hakuhodo in recent </p><p>weeks, after the loss of the $20 million Mitsubishi account. </p><p><BR><BR> </p><p>The Nestle gains are the latest in JWT Japan's remarkable $60 </p><p>million winning streak this year. </p><p><BR><BR> </p><p>New business wins this year are said to be equivalent to about 10 per </p><p>cent of the agency's full year billings. These include golfing equipment </p><p>brand Salomon & Taylor, fashion retailer Right-On and Prudential's PCA </p><p>Life. </p><p><BR><BR> </p><p>According to JWT president Ambar Brahmachary, the wins reflect </p><p>investments the agency has made over the past 18 months in its creative </p><p>and planning resources. </p><p><BR><BR> </p>

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