OMD loses Carlsberg media account to Initiative
Carlsberg has named Initiative as global media and the partnership includes its Singapore and Malaysian market. With this new development, the brand which is produced under license in Nigeria is hoping to re-energise its media planning and buying strategies to gain larger market share.
The incumbent on the account is OMD, which has worked with the brand since 2005. The global review was first called in March this year and was said to be handled by Ebiquity globally. According to global media reports, the review covers international brands, including Tuborg, Somersby ciders and Kronenbourg 1664, across 30 markets.
The appointment will be effective January 2018. The account is believed to be more than $100 million globally, though Carlsberg would not comment on the size of the account. The company spent roughly $924 million on marketing expenses in 2016, according to financial reports. That figure includes a range of brand marketing and trade marketing activities beyond media spend.
Last year, the company also began the development of a new commercial approach “specifically focused on helping customers to grow the beer category by better meeting consumer needs”, it said. Moreover, an analysis of the allocation of marketing spend was carried out in order to ensure the right level of support for the right brands. The company said it initiated work on revitalising the Carlsberg brand and updating the visual identity of the Tuborg brand in order to keep these brands relevant for the future. Results are expected to show this year.
According to Carlsberg’s recent financials the brand has strong market positions in 24 markets across Europe and Asia, with 74% of volumes are sold in these markets. And it is also beginning to develop strong footprints in other regions like Africa. Last year, net revenue in Asia grew organically by 4%, with the price/mix of increase 6% more than offsetting the organic total volume decline of 2%.
According to the group, it has”an attractive footprint” with solid market positions in Asia. Total beer market volumes in its Asian footprint amounted to approximately 576m hl in 2016, with China by far the largest beer market. However, volumes in Malaysia were negatively impacted by the excise tax increase on 1 March. Nonetheless, growth in our premium products, price increases and good cost control ensured solid financial performance.
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