Abbott Nutrition calls media pitch in China

The client has sent out invitations to a number of agencies, and pitch presentations are taking place this week. ZenithOptimedia has been working on Abbott Nutrition’s media account for almost nine years. MPG is also tipped to be involved in the pitch.

Abbott Nutrition is a division of Abbott, a global, broad-based health company that sells milk powder in China. Abbott Pediasure and Similac are some of its popular brands.

The client has not called a media pitch for over four years. McCann Worldgroup is working on Abbott Nutrition’s creative account in China.

In March, Abbott Nutrition moved its Hong Kong media account, reportedly worth US$26 million, from PHD to ZenithOptimedia following a pitch held in November 2011.

When contact by Campaign Asia-Pacific, Eric Li, marketing service director of Abbott China, declined to comment.

Abbott, like many of its competitors in the milk category in China, faces the issue of product safety.

China’s dairy industry has been hit by many tainted milk scandal in the past few years, shaking public confidence in locally produced products. For example, as reported in the FT in June, Yili announced it had recalled baby formula tainted with mercury.

Such reports have led to Mainland tourists snapping up as much foreign-made milk powder as they can find while visiting Hong Kong, even though such products are more expensive than local brands.

Many young mothers (especially those of the post-80's generation) are turning to alternatives such as online shopping and purchasing agents to acquire baby food and other infant-care items from abroad.

A surge in China's demand for imported milk powder has helped a number of foreign countries. For example, as reported in China media in August, New Zealand achieve a trade surplus in July amid a 12-month deficit. According to New Zealand government statistics, the value of New Zealand exports rose by US$240.55 million (NZ$296 million), or 8 per cent, in July, compared with July 2011.