Weekly Update 20th July 2006 | why am I getting this email?

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Our favourite ad this week: 

Coca-Cola's rather lovely new Happiness Factory ad, courtesy of Wieden & Kennedy Amsterdam, has been widely leaked over the internet prior to its appearance in other media. Even if it borrows some ideas from other ads, not least Honda's "Cog" and "Grr" spots (also by W&K), the spot achieves a rather special magic all of its own. What exactly it says about Coke is hard to discern, but it certainly leaves a beatific smile on your face. Which of course is the whole point... 

Recently Revised Profiles and Snapshots

HBOS Sony Corporation
British Airways Abbey
Clemmow Hornby Inge Kirin Brewery
Arcadia Group / Bhs Lego
Sony Pictures Nestea
Sony BMG Talent

In the news this week: Advertisers

The World Cup may have boosted sales of flat screen TVs, but fierce competition on price meant that most manufacturers did far less well than they had anticipated. Philips has reported weak 2Q profits on the back of huge losses at its flat panel manufacturing partnership with LG. Samsung reported a fall in 2Q profits for most of its divisions, with components and mobile handsets also experiencing pricing pressures. Nevertheless industry-wide unit sales are up sharply, with analysts predicting that total shipments of LCD TV sets this year, will more than double compared to 2005, to more than 42m sets.

Meanwhile UK satellite broadcaster Sky announced plans to offer free 2Mb broadband to all its customers as part of a £400m investment in its high speed internet business. The group has set a target of signing up 3m broadband customers by 2010. This investment, and the decision to offer broadband only as part of a general Sky subscription package, were seen by industry observers as a sign that the satellite broadcaster had lost interest in acquiring AOL's UK business, as had previously been anticipated.

The likely break-up of British cookie company United Biscuits gathered speed this week, following Kraft's buy-back of its UK biscuit brands, and the purchase of UB's Iberian subsidiaries. Premier Foods has now begun moves to acquire the remaining parts of UB, in a partnership with two private equity groups. Premier wants to take control of UB's Penguin and McVitie's brands in the UK. The Hula Hoops and KP snacks unit would be acquired by investor Lion Capital, while NPM Capital is keen to add UB's remaining business in northern Europe to its portfolio.

In other deals, PepsiCo agreed an alliance with the US growers' cooperative which controls the Ocean Spray cranberry juice brand. Pepsi will take over bottling, marketing and distribution of Ocean Spray's single serve products in North America. Church & Dwight, best known for the Arm & Hammer product range, agreed a $325m takeover of Orange Glo International, whose products include the eponymous household cleaner and laundry pre-wash OxiClean.


In the news this week: Agencies

Grey announced the merger of its numerous worldwide marketing services subsidiaries under the banner name G2. This was previously the name of the group's branding and design unit, but that business now merges with sister networks Grey Direct and Grey Interactive, as well as their various local subsidiaries and affiliates (such as Joshua in the UK, Grrrey! in France and Argonatuten 360 in Germany) to form a single global network. The integrated business will be able to compete efficiently with rival networks such as Proximity BBDO, OgilvyOne and Euro RSCG 3D.

The future of German agency Springer + Jacoby hangs in the balance this week following the collapse of a deal by interactive group Elephant Seven to buy out Interpublic's majority holding. E7's decision was initially attributed to the loss by S+J of its flagship account, Mercedes. However a more compelling reason was announced today, with the news that E7 is to merge instead with Germany's biggest interactive agency Pixelpark.

Vizeum, the second string media network within Aegis after Carat, began moves to open its first US office in 2006 or early 2007. Jamie Edwards was appointed chief client officer for the region.

Intel, whose agency of record is McCann Erickson, was reported by the US trade press to be talking to other agencies about ideas for a campaign for its new Core 2 Duo processor. According to Campaign magazine, Levi Strauss is also considering a change from long-term partner Bartle Bogle Hegarty, despite official denials. 

Among the confirmed account changes this week, LVMH transferred media buying and planning for all its brands in Japan out of Dentsu and into Asatsu-DK and MindShare. In the US, tire maker Bridgestone Firestone handed US creative for its brands to independent agency Richards; and Miller appointed CreativeonDemanD and La Comunidad to handle Hispanic marketing for Miller Lite and Miller Genuine Draft respectively. In the UK, Nintendo reappointed Leo Burnett to local creative after a review. 

Regards


Simon Tesler
Publisher, Adbrands

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