Kraft purges advertising companies as sales fall

Dive Brief:

  • Kraft has fired the majority of advertising agencies it works with, as sales fall for the maker of Oscar Mayer cold cuts, Kraft cheeses, Maxwell House coffee, and other brands.
  • Four agencies - McGarryBowen, Leo Burnett, Taxi, and CP&B - survived the purge. Kraft will consolidate its ad work with these companies. 
  • Among the agencies being shown the curb are TBWA​, Droga5, VSA Partners, The Martin Agency, and Wieden & Kennedy.

Dive Insight:

It's not surprising that Kraft feels a need to fire its ad agencies. Not because those agencies are doing a bad job necessarily, but because something has to be done. Sales are falling, costs are rising, and consumer tastes are changing.

Filed Under: Grocery Corporate Marketing
Top image credit: Flickr; Mike Mozart