WPP Group is understood to be creating a new division to service the £48m planning and buying account for Kellogg. The move will allow the group to retain its relationship with the cereal manufacturer, which is over 50 years old, following the confirmation from rival Nestlé UK that it is consolidating its media business in WPP-owned MindShare.
This includes the £17m account for Cereal Partners UK, which is one of Kellogg’s biggest rivals. It had been speculated that Nestlé’s decision to consolidate the business into MindShare would lead to a review of the Kellogg account.
The Cereal Partners business will be moved into MindShare by the start of 2006. The chilled dairy products, handled by Universal McCann, and the water division, which is with Zenith Optimedia, will be moved immediately. The Nestlé Purina Petcare business will move out of OMD by April 1.
Nestlé UK is one of the first divisions of the global company to announce its plans to consolidate into MindShare. Following a global review, Nestlé selected MindShare and Zenith Optimedia as the company’s global media and planning agencies, but the individual markets are left to select their own agency. Zenith also had a potential conflict as it handles the media for MÃÂ¼ller Dairies.