Fonterra's $100m account goes global

Fonterra has dumped most of its advertising agencies and awarded its $100 million-a-year advertising and media account - thought to be the country's largest - to global agencies BBDO and OMD.

The dairy company has dismissed several long-standing agencies, including New Zealand's biggest, Saatchi & Saatchi, in its push to get greater consistency across global markets.

The company's worldwide advertising account is understood to be worth around $100 million a year and includes brands such as Mainland, Anchor and Anlene.

Fonterra Brands managing director Sanjay Khosla said the move was a continuation of the company's Winning Through Brands! strategy that aimed to build strong brands in key markets such as New Zealand, Australia and Asia.

Khosla said the consolidation would harness scale when buying media space and streamline the transfer of successful advertising campaigns from country to country.

Advertisements would be made in the country closest to the brand and adapted to other markets.

"There is no one particular hub where everything will be done - this is not a centralisation approach.

"If a good idea comes from, let's say Malaysia, then the first thing to do is to see if you can transport that idea across markets," he said. Future campaigns would build on the past.

"There's no reason for any changes in any of the longstanding successful campaigns.

"Whether it's the Mainland 'good things take time campaign', all the stuff that is left from the past, we will actually build upon."

BBDO's network is strong in New Zealand, Australia and Asia. It won the account after a sales pitch that lasted several months.

The Auckland arm of BBDO, Colenso BBDO, already handled several Fonterra accounts, including Mainland and Tip Top.

The agency is one of the four biggest in New Zealand and other key accounts include Air New Zealand, Sky City, Frucor and Visa.

Saatchi & Saatchi chief executive Andrew Stone said he found out six months ago Fonterra was reviewing its arrangement.

He said Saatchi & Saatchi's Asian offices had conflicting accounts so could not handle the business.

Major brands

* Anchor: milk, cheese, butter.
* Mainland: milk, cheese, butter.
* Tip Top: icecream, desserts.
* Peters and Brownes: milk, cheese, yoghurt, icecream.
Anmum: milk powders for pregnant and breast-feeding women.