Magazine article Marketing

Heinz Draws Up Its First Design Agency Roster

Magazine article Marketing

Heinz Draws Up Its First Design Agency Roster

Article excerpt

Heinz has drawn up a UK design agency roster for the first time in its 122-year history.

As the grocery trade attempts to slough off its worst year for decades, Heinz -- whose core canned foods business has been hit harder than most by shoppers seeking bargains on basic foods -- will use four agencies for all its packaging design work. Until now it has called up designers on a project-by-project basis only.

Heinz will usher in the New Year with Fisher Ling and Bennion, Packaging Innovation, SMS and Ziggurat on its roster. All have worked with the grocery multinational before.

Heinz says rostering its agencies on a permanent basis will give them a greater understanding of its long-term design needs. But guaranteeing a minimum amount of work also gives in the ability to reduce fees-essential as recession-hit margins force support budgets to shrink.

"Most design companies would be quite happy to negotiate lower fees on the basis of secure work," says one design industry observer. "Margins are tough -- if a company gets its act together it can make itself quite a substantial saving. …

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