Danone hands 19m to RSCG

The Danone Group has completed the realignment of its estimated $30m (19m) European biscuit business by handing it to EURO RSCG.

In the UK, the 5m Jacobs Bakeries account shifts to EURO RSCG Wnek Gosper out of McCann-Erickson. Danone’s UK brands include Twiglets, Club Biscuits and Ritz Crackers.

EURO RSCG already holds the Danone biscuit business in several European markets.

McCann also handled some work for Danone biscuits in Italy, Germany and central Europe.

Danone’s decision is part of a wider review of its food business. This has been going on for several months to align agencies across specific food categories.

“The Danone Group, through acquisitions over a number of years, has found itself in a position of using many different ad agencies,” says Jacobs managing director David Freedman.

“It has decided to work with key agencies for different product categories. As a result, Jacobs will terminate its contract with McCann at the end of the year.”

McCann works for Nabisco in the US and Japan. It is understood that this conflict was a factor that influenced Danone’s decision.

“In the past, Danone has believed in non-alignment as a philosophy,” says a source. “But in Paris it has been coming under pressure from financial institutions to demonstrate that it is rejuvenating brands.”

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