MELBOURNE: Kraft Food's proposed $21 billion takeover of Cadbury could impact eight agencies working across both companies' brands in Australia.
Presently Cadbury and Kraft do not share any local agencies.
Yesterday (19 January), the Cadbury board recommended its shareholders accept an improved takeover offer from Kraft.
However, there is a marketing link between the two brand owners with are Kraft's director of marketing Michael Magee having left the top marketing role at Cadbury in February last year.
Cadbury's marketing team is now headed by Amanda Banfield. Banfield revised the Cadbury creative roster in November with George Patterson Y&R Melbourne picking up the Boost account. The agency also looks after Picnic and Cherry Ripe.
Saatchi & Saatchi Sydney handles the Dairy Milk portfolio and Publicis Mojo oversees Freddo, Roses and Cadbury’s innovation work. Cadbury's Media agency is Carat.
Kraft’s rostered creative agencies are JWT, Badjar Ogilvy and Draft FCB. Kraft retained its media agency Mindshare Melbourne in September after a global review of its suppliers.
“Kraft Foods believes a combination with Cadbury will provide the potential for meaningful cost savings and revenue synergies from which Cadbury Securityholders will benefit,” Kraft said in a statement.
“The combination will augment the world-class capabilities of both Kraft Foods and Cadbury by employing a "best of both" approach, from sales and marketing to distribution and management.”
A spokesperson from Cadbury said: “Shareholders are yet to vote and for us it is business as usual.”
In August Cadbury rejected an initial takeover, as undervaluing the group and its prospects.
Cadbury shareholders have until 2 February to vote on the offer.
Kraft would not comment on future marketing arrangements.
In the 12 months to November 2009 Kraft had a main media spend of $11.3 million, down on $14.4 million in the previous corresponding period. , while Cadbury had a main media spend of $25.3 million, up on $24.7 million, according to Nielsen.
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