Kraft keeps PR firms, but ad agencies are axed

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The company reported that its profit fell 11 percent year over year in the third quarter

CHICAGO — Kraft Foods said it will retain all 12 of its PR firms in North America after firing most of its advertising agencies last week.

The company said Friday that it will cut its advertising agencies from more than a dozen to only four: McGarryBowen, Leo Burnett, Taxi and CP+B/Union.

Russ Dyer, senior director of corporate affairs at Kraft, told PRWeek that part of the strategy behind trimming its ad agencies is that Kraft has strong relationships with certain firms that it has fostered over the years. Leo Burnett and McGarryBowen are both based in Kraft’s hometown of Chicago, which is "one of the bonuses," Dyer said.

Meanwhile, Kraft decided to keep its mix of PR agencies.

"We feel good about our (PR) agency roster," Dyer said. "We’ve got a lot of talented agencies, a good mix of different skill sets, and we continue to be pleased with a lot of the work."

Kraft’s PR agency roster is comprised of Brunswick Group; Edelman; Henson Consulting; Hunter Public Relations; Ketchum; Mitchell Communications Group; Olson Engage; Taylor; Weber Shandwick; MorganMyers; and Citizen Optimum and Harbinger in Canada.

Kraft reported an 11 percent drop in profit, year over year, in its third quarter of 2014. The company partly attributed its sales slump to price hikes for products such as Velveeta cheese and Jell-O.

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