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Oct 18, 2024

KFC removes MullenLowe as lead creative US agency | Ad Age Agency News

KFC is adding Highdive to its agency roster, Ad Age has learned. KFC is moving to an agency roster model for its U.S. creative business, a spokeswoman for the quick-service restaurant told Ad Age.

KFC is adding Highdive to its agency roster, Ad Age has learned.

KFC is moving to an agency roster model for its U.S. creative business, a spokeswoman for the quick-service restaurant told Ad Age. MullenLowe, which has served as KFC’s U.S. creative agency of record since 2022, is on the roster and will continue working on active projects.

As part of the shift, KFC has hired Highdive for an upcoming project.

“We are exploring ways to bring together the best agency roster for KFC U.S. that delivers results for the business and aligns us with the most forward-thinking agency partners,” the KFC spokeswoman said in a statement.

“We respect KFC’s decision to diversify their agency roster,” MullenLowe US CEO Frank Cartagena said in a statement. “We’ve been lucky to help reimagine an iconic brand like KFC for a new generation by putting the spotlight on the food and the people who eat it ... Now we’re looking forward to continuing our relationship alongside great partners we respect like Highdive.”

Highdive won the project after KFC held meetings with two agencies.

“KFC is embarking on a bold reset in the U.S. and Highdive is thrilled to partner with their ambitious team,” Highdive CEO Megan Lally said.

The news comes roughly two weeks after KFC named Catherine Tan-Gillespie its U.S. chief marking officer and chief development officer.

Tan-Gillespie, who has been with KFC for nine years, was most recently president and general manager of KFC Canada. She was previously CMO for KFC’s South Pacific region and then KFC’s global CMO before taking on the Canada role in 2022.

Although MullenLowe replaced Wieden+Kennedy Portland as KFC’s lead U.S. creative agency in 2022, KFC has been increasingly working with different agencies in recent months.

In April, Leo Burnett worked on ads promoting the chain’s new saucy nuggets. KFC has also worked with Louisville, Kentucky-based agency Nimbus for years. Nimbus handled KFC’s campaigns starring University of Colorado football coach Deion Sanders and his family in 2023 and again this summer.

MullenLowe launched activations for KFC earlier this year including a food truck and a pizzeria pop-up in New York. W+K, which had held the account for seven years, was known for ads that featured a rotating cast of celebrities playing Colonel Sanders. Under MullenLowe, the brand shelved that approach beginning with a campaign in early 2022 that played into KFC’s family appeal while leaning into its classic “Finger-Lickin’ Good” slogan.

This is the second major account change for MullenLowe in recent months. In July, Corona Extra appointed GSD&M as its lead creative agency after previously working with MullenLowe West. Shortly after the account change, MullenLowe laid off 3% of its U.S. staff.

Cartagena, who was named U.S. CEO in November 2023, has emphasized MullenLowe’s need to expand its digital, social and innovation capabilities. MullenLowe is seeing growth in its design and PR offerings, Cartagena has said.

Also read: Why agencies are launching design units

KFC's Sauce Serve Truck.

KFC is owned by Yum Brands, which also owns Taco Bell, Pizza Hut and Habit Burger & Grill. (Pizza Hut recently cut ties with its creative agency, GSD&M.)

“The KFC brand in the U.S. has been struggling,” Yum Brands CEO David Gibbs said during the company’s first-quarter conference call in May, announcing an effort “behind the scenes” to “boldly reset the brand in the U.S.”

KFC’s U.S. same-store sales fell 7% in the first quarter and 6% in the second quarter, according to results previously released by Yum Brands.

KFC has worked with numerous agencies outside the U.S. since last year including Courage in Canada, Havas Paris, Mother London, Edelman in Hong Kong and Special PR in New Zealand. In July, KFC appointed FCB India as its creative AOR in India.

In this article:

Brian Bonilla covers ad agencies, including creative and media shops, experiential, health care agencies and more. He previously covered the private equity industry as a reporter for PEI Media.