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Advertising News South Africa

Nando's agency flies the coop

Ad agency Cross Colours has ended its business relationship with Nando's after a dispute over remuneration and the unstructured use of multiple agencies, it revealed today, Thursday, 25 March 2010. The two companies had had a client-agency relationship these past 14 years, with Cross Colours doing most of below-the-line and design work for the fastfood chicken franchise.
Nando's agency flies the coop

Cross Colours MD Adelle Wapnick says that the agency chose to resign the account, saying that Nando's is a labour-intensive brand and it is extra hard work to maintain its reputation for quirky, newsworthy and current advertising campaigns. Neither did the remuneration match the input from the agency. At the same time, its use of multiple agencies pitching against one another did not do much for building relationships.

Wapnick hastens to add that the move had nothing to do with chemistry or personal relationships, which she maintains remain warm. She feels that her agency has matured and that after 14 years it had to look to renew itself. She adds that as Cross Colours grew more structured, the account did not, throwing the relationship out of kilter.

The process took about a year, during which time the issues Cross Colours put on the negotiating table could not be resolved.

Wapnick confirmed that no retrenchments would be made at Cross Colours as a result of the move and that other foodie brands have already approached the agency. No new contracts have been signed as yet.

The short media statement released earlier today did not reveal the reasons for the split, merely that it had happened and that Cross Colours were the party to resign the account. Wapnick says this was to address speculation that the agency had been fired.

Updated 25 March 2010 at 1.12pm

About Herman Manson

The inaugural Vodacom Social Media Journalist of the Year in 2011, Herman Manson (@marklives) is a business journalist and media commentator who edits industry news site www.marklives.com. His writing has appeared in newspapers and magazines locally and abroad, including Bizcommunity.com. He also co-founded Brand magazine.
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