According to reports, P&G is moving all of its business out of the Havas-owned Arnold Worldwide, which will see the agency stripped of its Bounty (paper towels), Zest soap and Era washing-up liquid accounts that are worth a combined $80m.
The move is a bitter blow for Arnold as it effectively dashes its hopes of being perceived as a global agency network. The axing of Arnold will bring to an end a nearly 20-year-old relationship between P&G and Arnold McGrath.
The loss for Havas will bring some cheer to a number of its rivals. Grey Global Group looks set to pick up the Zest business. Grey adds the business to its existing P&G brands, which include Pantene and Clairol.
The biggest winner looks likely to be Havas rival Publicis Groupe. Its Publicis Worldwide agency is set to pick up Bounty, while the Era business will go to Publicis's Leo Burnett. The Publicis agency is already in line to benefit from the break-up of D'Arcy, where it is in line to pick up Puffs facial tissues and Tempo dry wipes.
According to Taylor Nelson Sofres CMR. P&G spent $1.6bn on US advertising last year, with the rest split evenly between Europe and the rest of the world.
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