San Miguel reviews regional media job

San Miguel has begun a regional realignment of its media business, aimed at consolidating a number of markets with its Philippines media AOR, Starcom.

In Hong Kong the business -- previously handled by Universal McCann -- has already been handed to Starcom, and a similar process is underway in China and Australia. In Australia, the San Miguel-owned Berri Juices and dairy product brand National Foods, among others, attract a combined spend close to A$30 million (US$22.2 million), according to sources, making it one of the largest markets for San Miguel in the region. With other markets expected to follow, sources said the move reflected a growing need from the beverage and food giant to reorganise its regional business, as it moves to increase its presence in other markets and categories. "The spend in China is not large, it's not a big piece of business," said a source. "But Australia is huge, and I think that this move will eventually happen in all markets." Earlier this year, San Miguel overhauled its marketing team and requested its creative agency, McCann Erickson, do the same. Industry sources speculated the move was in line with its expansion plans, along with the need to modernise a number of brands to remain competitive. The media reshuffle and creative rejig follow last year's creative realignment for two of San Miguel's key brands in Hong Kong and China: San Miguel Pale Pilsner and San Miguel Light. McCann won the US$4 million business without a pitch from incumbent agency Ogilvy & Mather, with Universal McCann handed the media brief. McCann was already the AOR in San Miguel's lead market, the Philippines, where it has handled the business for 20 years. San Miguel was unable to be reached for comment at Media's press time, but it is believed the regional realignment is expected to be completed by early next year.