Kraft Foods is understood to be looking at consolidating its estimated $100m (£50.3m) global agency roster, following its acquisition of French dairy and bottled water company Danone’s biscuit division last year.
Kraft’s creative agencies include JWT, DDB, Ogilvy and DraftFCB in some European countries. Now the food giant owns Danone’s biscuit division, which includes brands such as TUC, it also has Euro RSCG on its roster.
It is understood the food giant is looking to cut its advertising agency roster down from five to as few as two. The company is looking to cut costs and internal changes are underway. Kraft started to review internally and it is thought its three incumbent agencies will be invited to pitch. It is not yet known if external agencies will be invited to pitch.
Kraft Foods is the world’s second largest food and beverage corporation after Nestlé and operates in 63 countries. Kraft’s UK business spans coffee, cheese, confectionery, desserts and grocery products. Its top brands include Kenco coffee, Dairylea cheese and Terry’s Chocolate Orange.
The Kraft Cheese Company was formed in Europe in 1927. In 1985 Phillip Morris Companies bought General Foods and in 1988 it bought Kraft Inc to form the world’s largest consumer products company. Three years later the two were merged to form Kraft Foods Europe. In 2000 the company announced it would combine its various companies under the name Kraft Foods.