Roger Corbett, CEO of Woolworths Australia, announced the fresh food retailer's intention to appoint M&C Saatchi, Sydney this morning after 15 years with incumbent agency Leo Burnett.
According to Corbett: "The decision to change was not an easy one and was not taken lightly. We do however have an overriding focus on refreshing all aspects of our business."
He added: "The new appointment will allow us to explore new and different opportunities to extend the Woolworths brand communication. M&C Saatchi provided a compelling proposal to partner with us to pursue further growth for our brand."
According to Tom Derry, the M&C Saatchi Asia Pacific chairman, the pitch was the most exhaustive he had been involved in. The win boosts the Australian agency's billings to A$240m. It will allow the agency to expand its operation, growing from its current 88-strong team by at least a dozen.
Also competing for the account were Singleton Ogilvy & Mather, Oddfellows, 360 Degrees and Clemenger Harvie in Melbourne.
Bernie Brookes, Woolworths head of marketing, said: "The new arrangement will commence shortly following the conclusion of a formal agreement, with a transition period through until the end of this financial year."
M&C Saatchi will be partnering with Mitchell Media for media management.
There was little consolation for Leo Burnett, which was warned that the account would go into review 18 months ago. The agency has said it will retrench its Sydney operation.
"Our partnership with Leo Burnett has served us extremely well for an extensive period of time. Leo Burnett have unquestionably played an integral role in the success of 'The Fresh Food People' branding. Our sincere thanks goes to the team at Leo Burnett for the very professional job they have done over a long period," Corbett said.
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