Dive Brief:

• Starbucks has appointed Anomaly to handle its U.S. creative business, shifting gears after previously handing those duties to WPP in October, Ad Age reported. 
• Stagwell-owned Anomaly was part of the initial pitch for the coffee chain’s account last year. WPP established a bespoke Team Starbucks unit drawing on several agencies, including Ogilvy, VML and Landor, to work on the embattled brand. 
• Not long after selecting WPP last fall, Starbucks named Tressie Lieberman as its first global chief brand officer. Starbucks is trying to break out of a sales slump and reclaim its status as a “third place” for gathering, along with a premium brand positioning. 

Dive Insight:

The sudden creative agency switch is a blow to WPP, which was building a bespoke unit to service Starbucks at a pivotal moment. The coffee chain is in the midst of an ambitious turnaround plan under new leadership that vies to return the company to its coffeehouse roots and reclaim a reputation as a “third place” where people can casually gather.  

How that strategy manifests to U.S. consumers will now largely be handled by Stagwell’s Anomaly, which was part of the original pitch for the business last year, along with WPP, FCB and prior incumbent Spcshp. WPP will keep a place on Starbucks’ roster, according to Ad Age, though obviously in a diminished capacity. Starbucks did not immediately return a request for comment. 

The news adds to a series of shakeups at Starbucks, which has in recent years contended with slumping sales, labor disputes and the perception that it has lost control of its brand’s narrative and original appeal. Last year marked a nadir for the brand, leading to major changes in the top ranks.  

Former CEO Laxman Narasimhan was fired in August and replaced by Chipotle chief Brian Niccol, who quickly reversed some of his predecessor’s initiatives. Shortly after WPP won the U.S. creative account last fall, Lieberman, who also has past experience at Chipotle, was named Starbucks’ first chief brand officer. Starbucks has stated that installing a CBO is intended to deliver “a compelling and consistent brand experience across every customer touchpoint.” 

Starbucks’ comparable sales, a key measure of restaurant health, declined 6% year over year in the key North America region in the company’s fiscal Q4 2024. North America comp sales were down 2% for the full fiscal year. 

“It is clear we need to fundamentally change our strategy to win back customers. ‘Back to Starbucks’ is that fundamental change,” said Niccol in a statement, referencing the name of his turnaround plan. “My experience tells me that when we get back to our core identity and consistently deliver a great experience, our customers will come back. We have a clear plan and are moving quickly to return Starbucks to growth.”

Creative agencies have been a sore spot for WPP, which is fighting for its own return to growth. Integrated creative agencies saw revenue slide 3.1% in Q3 2024, with the Starbucks account win seen as a spot of optimism at the time.