Hershey hands US media duties to Publicis, adding to agency’s win streak

Dive Brief:

The Hershey Company has selected Publicis Groupe to handle its U.S. media duties following a review overseen by MediaLink, according to a press release. The review did not include Hershey’s international business.
Publicis has formed a bespoke unit, MiltonOne, to act as agency of record (AOR) for the marketer’s candy, mint, gum, salty snacks and protein offerings. MiltonOne features a custom solution for Hershey and draws on talent from across the agency’s network.
Publicis was praised by Hershey for its strong grasp of strategic planning and data and technology. The ad-holding group has emerged as a top performer among large agencies due to its data-driven marketing capabilities and Power of One operating model.

Dive Insight:

The wins keep rolling in for Publicis, which has outperformed peers in the agency space as its streamlined operating model and data-marketing bets gain further traction with brands. The media agency change completes a review Hershey kicked off in May and comes as the confectionery giant has been pushing to expand its business into a more diversified snacking company, including through heftier marketing expenditures. Divisions like salty snacks have surpassed $1 billion in sales but Hershey’s has also contended with consumer spending pullbacks resulting from inflation and higher prices for ingredients like cocoa.

Hershey’s advertising and related consumer-facing expenses rose 12% year over year in Q1. The marketer previously had a patchwork of media agency partners in the U.S. and is now centralizing its work under one dedicated team. The unit’s name, MiltonOne, is a nod to Hershey’s founder Milton Hershey.

Hershey has also been experimenting more with artificial intelligence (AI) to improve media efficiency and performance around key occasions like Halloween. Publicis, like many agencies, has leaned heavily into AI to position itself on the leading edge of a tech trend that’s poised to disrupt marketing.

“Publicis demonstrated leading expertise to accelerate key capabilities while unlocking value and growth for our brands at Hershey,” said Vinny Rinaldi, head of U.S. media at The Hershey Company, in a statement around the AOR appointment. “Their strong focus on strategic planning, integrated investment, and data & technology enhancements will complement our internal integrated media capabilities as we propel Hershey into the future.”

Publicis nabbing another big account comes ahead of its first-half trading update scheduled for Thursday. Earlier this month, The Lego Group named Publicis One its global media agency following an intensive 18-month pitch. Interpublic Group’s Initiative, which is assisting with the transition, previously handled the toymaker’s media business for seven years.