Danone has consolidated its global media account with WPP’s Wavemaker after a competitive review.
The consumer goods giant, which owns dairy, plant-based and water brands such as Alpro, Actimel, Evian and Volvic, recently admitted to investors that it had “underinvested” in advertising and has pledged to increase its investment by an additional amount. €300m (around £250m) of ‘brand support’ over the next 24 months.
Wavemaker already managed media for Danone in certain key markets, including the United States and Europe, and several other global agency groups were also incumbents.
It is understood that the WPP agency has added digital tasks in Europe, the Middle East and Africa and won media tasks in other key regions, including Southeast Asia and Latin America. However, China was not part of the review.
The move to consolidate its media is part of a broader overhaul of French company Danone.
In an unusually candid presentation to investors in March, the company told analysts it operated in “healthy, trending and growing categories” and yet “we have underperformed our categories and our peers” since before the pandemic.
Danone said it cut advertising and promotion (A&P) spending by 20% between 2017 and 2021 and cited figures that showed it was having a negative effect on its share in key markets such as France and the Kingdom. -United.
Antoine de Saint-Affrique, CEO of Danone since September 2021, said: “For years, we have been structurally underinvesting behind our brands.
The company needs “consistent” investment in its brands, including its core brand marketing team, and a broader cultural “reset” to drive growth and innovation, according to de Saint-Laurent. Africa.
Juergen Esser, chief financial, technology and data officer, explained the business case for “reinvesting” 300 million euros into A&P over the next two years.
“We’ve underfunded our brands, operating with too little A&P,” he said. “We will ensure that our brands at least get their fair share of voice.
“We will create the visibility our brands deserve to communicate their superiority and differentiation. Our investments in this area will allow us to catch up, to become competitive again on the market.
While its A&P spending was flat in 2021, putting “more media” behind certain brands led to growth and market share gains, the company noted.
Danone did not respond to an invitation to comment on its press review. Wavemaker declined to comment.
