Ogilvy cuts ties with HK beverage firm

HONG KONG: Ogilvy & Mather has parted ways with Hong Kong trading and distribution company A. S. Watson Group after winning Coca-Cola brands' Fanta and Sprite across 11 Asian markets in a global realignment. Client concerns prompted O&M to end its 11-year relationship with the company for its water and Mr Juicy brands from January 2000, although O&M will only be working on Coke's carbonated brands. O&M's Greater China group chairman Joseph Wang said both sides expressed concerns about sharing the same agency. "Watson's aware that Coke has Bonaqua (its water brand) and juices, while Coke was concerned about sharing market information, particularly as growth for Coke will come from its non-carbonated categories." The parting of ways comes despite pioneering steps by the agency to strengthen in-house security measures across Asia. Wang said the agency had commissioned a third-party for a US$100,000 audit of security measures in force at its five Greater China offices since the agency handles Motorola as well as interactive and PR assignments for Nokia. Wang said agencies would need to tackle the security issue soon because the bigger an agency group becomes, the more difficult it is to avoid taking on clients in the same category.

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