After 25 years together, Unilever and PHD Canada are parting ways, with MindShare now handling the Canadian media planning and buying business for the packaged goods giant.
PHD Canada president and CEO Fred Forster confirmed Monday afternoon that his agency had lost the business after a months-long review that was part of a larger global agency realignment.
"Unilever had undertaken a global review for their media business under which they were looking to align their media agencies regionally under a new multi-country organizational structure," he said. "That was the impetus for the review."
As a result of that global structural realignment, the Canadian media planning and buying business is effectively being rolled into the U.S. business.
"This was decision-making being carried out on a global scale," said Forster. "In fact it did not involve the marketing or brand teams in Canada. It was carried by global procurement."
According to AdAge.com, WPP's MindShare, which was incumbent on the business in the U.S., beat out Omnicom Group's PHD and Interpublic Group of Cos.' Initiative for the North American assignment valued at about $800 million.
"We worked on the Unilever business for 25 years, and won tons of awards," Forster told Marketing. "We had one of the strongest relationships that any media agency has ever had with any client."
PHD Canada was involved in the pitch to win the North American assignment, said Forster, but clearly the focus in the review was on the U.S. since it represents about 90% of the North American business.
While the switch constitutes a major lose for the agency, Forster said the agency has essentially been understaffed after recently picking up accounts with clients including Public Mobile, Dundee Wealth, Trader Corp., and WSPA.
"We have been holding off on staffing decisions in terms of hiring staff... trying to wait for the Unilever outcome," he said.


