Benjamin Li
Oct 20, 2009

OMD scoops Danone's $150 million China media account

SHANGHAI - Omnicom's OMD has won French FMCG water and dairy company Danone's China media planning and buying account as part of the company's global media review.

OMD scoops Danone's $150 million China media account
Danone originally called the pitch in July. The first round of the pitch involved OMD, MEC, MPG and Vizeum. MEC and OMD were shortlisted for the second round of the review.

The media budget is understood to be an estimated US$150 million. The media account includes Dumex Milk Powder, the leading foreign milk brand in China, Robust Waters, a carbonated drinks and water brand, and Danone Dairy, according to sources close to the pitch.

Representatives of OMD declined to comment on the win.

Y&R is one of the main creative agencies on Danone China, while Euro RSCG China handles Danone's premium water brand Evian.

Elsewhere, MEC is expected to retain the media account for Danone UK, with appointments also imminent in other markets following the review.

The French-based company called the market-by-market review earlier this year, mirroring the process it undertook in 2005-06.

Danone, which owns brands including Evian, Activia, Actimel and Clover, spends an estimated $500 million globally on media planning and buying.

In the US the account is handled by MPG. The Havas-owned agency pitched against MEC in the UK. The latter was awarded the account in 2006 following a pitch against MPG, OMD and the previous incumbent Carat.

Danone is not expected to consolidate its entire European media business into one network, but rather appoint GroupM and MPG to share the bulk of the business.

Danone is the world’s leading producer of fresh dairy products, with sales on 3.2 million metric tons in 2008. The dairy division accounts for roughly 60 per cent of the group’s sales, and achieved eight per cent growth in 2008.


Source:
Campaign Asia

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