Burger King to review advertising after $1.5bn sale
NEW YORK - Burger King's $300m US advertising account is to be reviewed following its sale by Diageo to venture capitalists Texas Pacific Group.
According to reports, agencies including WPP Group's Young & Rubicam and Publicis Groupe's Saatchi & Saatchi are gearing up for a review. Diageo is selling the chain for $1.5bn (£945m).
Burger King only consolidated its US advertising work with Interpublic Group of Companies agencies in July this year -- just prior to it agreeing the sale with Texas Pacific. The media-planning and buying account was shifted from Bcom3's MediaVest into MediaFirst International, and Deutsch picked up the majority of the creative account, which had previously been held by D'Arcy.
Other Interpublic agencies on the Burger King roster include Draft Worldwide, which looks after direct marketing, and Campbell-Mithun, which works on children's marketing.
Y&R would be a likely contender because of its work on the KFC fast-food chain. The agency lost that work to Omnicom's BBDO Worldwide in 2000. However, Yum Brands, which owns KFC, has just handed Y&R the Canadian business for its fast three main fast-food chains (which also include Pizza Hut and Taco Bell) causing a potential client conflict.
Another possible contender is Saatchi & Saatchi New York, which has worked on the Burger King account in the past.
Diageo had originally agreed to sell Burger King to Texas Pacific in July this year but renegotiated the deal. The sale was announced on Friday.
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