Reckitts tipped to shift £11m Boots brands work

by Joanna Bowery, Marketing 12-Oct-05

Reckitt Benckiser is expected to move the £11m ad account for Boots consumer brands including Clearasil and Strepsils following its £1.9bn acquisition of Boots Healthcare International (BHI).

McCann-Erickson, which has handled all of BHI's UK advertising since
1997, is set to lose up to five brands as a result of the deal.

Reckitt Benckiser, which already owns the Lemsip, Dettol and Finish

brands, is likely to shift advertising responsibility for the brands to

its roster agencies, which include JWT and Euro RSCG.

Crookes Healthcare, the UK subsidiary of Boots Healthcare International,
owns the Clearasil, Strepsils, Nurofen, Karvol, Optrex and E45
brands.

Nurofen alone accounts for an adspend of £7m, according to Nielsen
Media Research.

A Reckitt Benckiser spokesman said that it was too early to talk about
agency arrangements.

The company expects to complete its £1.9bn purchase of BHI next
January, subject to regulatory approval. It has already pledged further
investment in brand development for BHI products.

Analysts believe that the deal will almost double Reckitt Benckiser's
healthcare revenue. As well as Lemsip, the healthcare division sells
mouth ulcer treatment Bonjela, heartburn remedy Gaviscon and laxative
Senokot.

The deal comes just days after Boots announced its merger with Alliance
Unichem, which is expected to result in hundreds of job cuts but savings
for consumers if the takeover is given the green light by regulators.