Kraft’s $21.1bn bid for Cadbury puts agencies on alert

Kraft Food’s $21.1bn bid for Cadbury has put the companies’ marketing communications agencies on alert, with the deal closely following Mindshare’s retention of Kraft’s media account in Australia, and a review of the Cadbury advertising roster.  

Kraft’s takeover bid, widely expected to be approved by Cadbury investors on February 2, is part of the US-based company’s aggressive strategy to become a leader in the global foods and confectionery sector.

It is also expected to follow the trend among many multinationals, including PepsiCo, Kellogg, Bayer HealthCare, Reckitt Benckiser and Coca-Cola, to review and consolidate its global agency arrangements in a bid to cut costs.

In Australia, Mindshare Melbourne – Kraft’s long-term incumbent – was recently reappointed to its estimated $15m media account. Ad agencies on the account are JWT and Badjar Ogilvy.

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