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Heineken picks Publicis to create its advertising campaigns

Reuters - UK Focus

PARIS, June 30 (Reuters) - France's Publicis (Paris: FR0000130577 - news) has won a contract to be the lead advertising agency designing the campaigns of beer maker Heineken (Other OTC: HEINY - news) globally, the companies said in a statement.

The value of the contract was not disclosed but a Heineken spokesman said the beer group had allocated 12.7 percent of its 2014 sales of 21.2 billion euros ($23.63 billion) towards sales and marketing efforts.

Independent outfit Wieden + Kennedy had previously been the lead agency advising Heineken for the past five years on its branding and advertising, with Publicis in a supporting role.

The contract comes at a tough time for Publicis when organic sales growth has been lagging rivals and it is racing to integrate the $3.7 billion acquisition of digital ad agency Sapient.

It is also defending an unprecedented number of lucrative media buying contracts in the coming six months, more than competitors WPP (LSE: WPP.L - news) and Omnicom, amid a shake-up of the industry. ($1 = 0.8973 euros) (Reporting by Leila Abboud, editing by Astrid Wendlandt)