JWT scoops $20m Nestle sweets deal

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

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