FCB South Africa, the country's biggest advertising agency, has parted company with the Shoprite Checkers Group - a move that will cost billings of about R110m/year.
Shoprite is the agency's third-biggest account after Vodacom and Toyota. FCB will retrench as many as 21 people after being given three months' notice.
The FM understands Shoprite is about to sign a formal deal with retail advertising expert Darryl Fine, who had the account before selling his business (United Advertising Network) to FCB five years ago. Since then, according to FCB insiders, Fine has played a peripheral role regarding the Shoprite business, having spent much of his time living abroad.
He teamed up with FCB at the time because his small specialist agency needed more infrastructural muscle to match Shoprite's local and international expansion.
Apparently FCB has just completed its last tranche of payments to Fine, who has moved quickly to form a new partnership with Cape Town-based agency Berry Bush BBDO.
Berry Bush handles the Checkers component of the business. The agency's Rob Berry has been seconded to Fine's new agency, tentatively named Adworks.
Both Berry and Shoprite CEO Whitey Basson are said to have long-standing relationships with Fine, and it's understood Basson was instrumental in bringing him back into the fold.
According to research company AC Nielsen, Shoprite Checkers is the country's third-largest advertiser behind Unilever and government.
Shoprite Checkers confirms it has ended its relationship with FCB Activ, the retail advertising arm of the FCB group.
Says marketing director Brian Weyers: "Shoprite and FCB Activ have reached an amicable agreement whereby the agency will in future take responsibility for the supermarket group's communication business in 13 countries beyond SA's borders."
Weyers believes Fine could add value to the Shoprite brand and its positioning in the market.
FCB CEO Neil van der Weele is phlegmatic about losing the business, and wishes Shoprite well. He points out that in the latest Markinor brand survey, Shoprite moved from the fourth-most-liked SA retail brand to number two - an indication, he says, of a job well done.
He confirms talks were held between FCB and Fine earlier this year, but came to nothing.
Van der Weele says some staff will be absorbed into the main agency in Cape Town, others will be seconded to work on the Shoprite African and Indian business. He confirms 21 people will be retrenched.