'Pass the cheer'

"There are times when it just makes sense to part with a client," Dan Wieden of Wieden & Kennedy explains, describing the agency's decision to cut ties with coffee giant Starbucks.

Wieden & Kennedy has held the Starbucks account since 2004. While much of the brand's creative is managed in-house, Wieden served as the primary agency for the coffee roaster and was responsible for Starbucks' first large-scale television advertising effort, including last winter's premier TV push. It also conducted some media buying and planning.

But compared to other large brands, Starbucks is a small fry in ad spend, writes Advertising Age. Last year it spent a mere $37.6 million in measured media. In contrast, Coca-Cola and Nike — both clients of Wieden — spent $411 million and $184 million, respectively.

And Starbucks is in no position to raise spend, either. The company posted its first-ever fiscal deficit since going public in 1992, reporting a $6.7 million net loss in the third quarter, writes Retailer Daily.

Revenue was still up 9.1 percent, and much of the net loss was blamed on restructuring efforts (i.e., trimming capital expenditures, store closings). Nonetheless, a number of key marketing personnel chose to leave the company. Some reports peg staff cuts as high as 30 percent.

The return of Harry Roberts to the position of chief creative officer was also said to pose difficulty to Wieden, which struggled to sell work to the client and was unhappy with the prospect of competing with other shops for assignments.

Other agencies that have participated on co-branded efforts include Energy BBDO, which helped market a Starbucks/Beam Global Wine & Spirits coffee liqueur brand, and Goodby Silverstein & Partners, which worked on bottled Frappucino beverages.

Recently, Starbucks solicited these second-fiddle agencies to provide fresh ideas for moving the brand forward. Wieden, put-out, opted to step aside.