Big companies start media reviews banging on about value and effectiveness and end up trying to negotiate the most onerous terms they can – including extending payment terms to 120 days and beyond. Asking your media agency to be your bank is hardly a good way to start a relationship.
Completely predictably Kraft Heinz appears to be going down this route to the extent that ID Comms partner Tom Denford has refused to be involved as consultant/pitch manager.
ID Comms has been nobly promoting the cause of value over cost savings for years now but seems to have given up on this one. Publicis’ Starcom and DAN’s Carat are said to be the favourites.
Kraft CEO Irene Rosenfeld demerged its snacks business (the best bits) as Mondelez in 2015 leaving Kaft (now Kraft Heinz) with a crowded roster of legacy food brands. It’s fair to say the Kraft brands haven’t prospered mightily. Kraft Heinz’s biggest shareholder is Warren Buffet’s Berkshire Hathaway.
So knocking the company into shape is the over-riding priority and the lucky (?) media agency will need to play its part.