McHugh's role will will focus on driving strategic, creative and logistical output for Tesco. She will manage the Taste at Tesco team, which is based at the agency’s satellite office in Welwyn Garden City, nearby to the client’s headquarters.
McHugh previously worked at creative agency BBH in the roles of retail director, digital account director and account director before joining N2O.
Dan Jenner, sales director at N2O, said: "We’re really excited to have Fiona on board and she brings with her a wealth of experience, which will be key in her client services role at N2O."
McHugh said: "I’m looking forward to driving N2O’s vision alongside the senior team, identifying proactive initiatives which both add value to and exceed Tesco’s expectations of N2O’s contribution to their business."
N2O's client list also includes Boots, L’Oréal, Mondelez, Morrisons, P&G, Superdrug and Unilever.
Earlier this month, it was announced that N2O had been re-appointed by Superdrug to handle the brand's experiential activity.
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