Uni-President clashes with JWT Shanghai

Uni-President is understood to have ended its agreement with JWT just two months after handing the agency four of its instant noodle brands, following a pitch against Dentsu's Shanghai Oriental Partners, Bates and incumbents Nitro and McCann Erickson. The company, sources noted, was seeking a further consolidation of its foods business towards its Olympics strategy, handled by IPG's Weber Shandwick.

"The excuse the agency was given was that it was due to consolidation, but of course JWT has already hired at least four key staff to work on the account," said one source.

Uni-President was believed to be in talks with McCann Erickson at press time.

JWT's initial pitch assignment was for an Olympics project, with the remit extended to integrated above- and below-the-line communications for the Lai Yi Ton, President 100, Xiao Dang Jia and Xiao Wang Xion brands.

China is a key market for Uni-President, with 48 per cent of its food turnover coming from the mainland, compared with 42 per cent in Taiwan and 10 per cent for Southeast Asia. Last year, Uni-President's total brand sales in China surpassed Taiwan for the first time. However, its brands are facing a difficult battle against market leader Master Kong and Tingyi, after the latter posted a 26 per cent increase in sales to US$1.84 billion in 2005.