- A merger announced Wednesday morning between H.J. Heinz Co. and Kraft Food Groups Inc. could be bad news for agencies involved with brands at the two corporations. In the short term, the focus will likely be on larger cuts.
- The merger could potentially lead to brand consolidation and restructuring of agency relationships—ultimately resulting in the disintegration of some agency ties.
- When 3G Capital acquired Heinz in 2013, 7,000 jobs were cut and five plants were closed.
Anytime a big brand merger happens, there are always causalities. Agencies involved with Heinz or Kraft should be prepared for relationships to change, and have a plan in place to overcome being cut from the roster. Last year, Heinz spent $42 million on media. Kraft spent $540 million, but Kraft does have more brands. Just like with P&G's brand purge, agencies may have a reason to be nervous.