PROMO 100 Catch-up

Time does not stand still in the world of promotion marketing agencies.

No sooner does a magazine compose a list of the 100 best agencies than those shops start changing their complexion through acquisitions and account activity. Here’s a rundown of announcements that took place since the PROMO 100 issue went to bed:

• Equity Marketing (No. 64) strengthened its promotion capabilities by signing a deal to acquire Upshot from bankrupt Ha-Lo Industries.

  The deal gives Los Angeles-based Equity the expertise in strategic planning and creative development it had been trying to establish in-house to enhance its reputation. Until now, the company largely has been regarded as a premium shop, due to its work in that area for flagship client Burger King. The QSR’s business accounted for 66 percent of Equity’s $144.3 million in 2001 sales. (That total is down from 80 percent in 2000.)

  The deal was announced shortly after a trade publication reported that Burger King had issued an RFP to find a second premium supplier. Until last fall, the chain had also used Irvine, CA-based Alcone Marketing (No. 47) for that activity.

  BK’s promotion agency of record, DraftWorldwide, launched a premium division late last year by hiring 14 former employees of Simon Marketing; Simon was forced to shut down its Chicago-area office after losing the McDonald’s account in the aftermath of last summer’s gamepiece scandal (October 2001 PROMO).

  PROMO’s Agency of the Year in 1999, Chicago-based Upshot (No. 46) had a less-than-stellar three-year tenure under faltering promotional products supplier Ha-Lo, Chicago. The parent company’s financial troubles, which forced it to file for bankruptcy protection last summer, cast a shadow over the shop. Upshot had net revenues of $22.6 million in 2001.

  Upshot co-founders John Kelley and Carol Griseto will leave the company soon after the deal closes, leaving president Brian Kristofek in charge of the operation. The pair had considered a management-led buyout until opting for an outright sale.

  Equity’s existing promotion operation will become part of Upshot, which recently launched a new marketing campaign for Coca-Cola’s Fruitopia brand.

  Speaking of DraftWorldwide (No. 3), the Chicago shop was recently named promotion agency of record for Omaha, NE-based ConAgra Foods’ Orville Redenbacher brand. The assignment includes retail promotion, packaging, and in-store events.

• DVC Worldwide (No. 8) launched an independent experiential marketing company under the guidance of John Palumbo, who until recently was chief strategy officer at Big Fat, Inc., New York City.

  The Manhattan-based unit will work with DVC in Morristown, NJ, to develop experiential programs for its clients, but will also seek its own business. Based in New York City, the as-yet unnamed shop launched with six employees.

• Harwood Marketing Group (No. 82) acquired Addison, TX, neighbor Martin Communications. The acquisition adds such clients as HBO, IMAX Theatres, and Blockbuster to the Harwood roster, which itself includes Kimberly-Clark and Nokia. Former Martin president Martin Pulley joins Harwood as vp-new business development.

• Tipton & Maglione (No. 78) struck a deal to become part of The Dentsu Group advertising network. The New York City shop will provide promotion services to Dentsu clients.

• MasterCard International named Integer Group (No. 39) to handle its estimated $20 million promotion account, concluding a review that began late last year.

  Golden CO-based Integer beat out DVC Group and Paramus, NJ-based Einson Freeman (No. 40) in the final stage of the review. Incumbent Ryan Partnership (No. 11), Wilton, CT, bowed out before the final round.

  “We are confident [Integer] will be able to deliver against the promotional development needs of our multiple business units,” says Robin Blunt, MasterCard’s vp-global promotions.

  As promotion agency of record, Integer will handle integrated campaigns built on MasterCard’s “Priceless” ad theme, drive card usage, support member banks, and encourage retailer participation. The first work will be a holiday 2002 campaign.

  Ryan’s final work with MasterCard, a massive tie-in to Major League Baseball, breaks this month (see Campaign Trail).

• United States Beverage, Stamford, CT, named Catalyst (No. 92) agency of record for its Grolsch beer brand. Fairfield, CT-based Catalyst will handle marketing planning, advertising, promotion, and merchandising. The first work will break this summer.