The Anglo-Dutch household goods giant Unilever has agreed a £320 million deal with both Carlton Communications and Granada. Both sides are happy with the record-breaking agreement.
As part of its Path to Grow strategy, through which the company hopes to focus on 400 products out of its 1600 product portfolio, Unilever has signed a four-year deal that supersedes an arrangement of renewable annual contracts. The deal covers many well-known brands from Dove soap to Wall’s ice cream.
Unilever, which was already Britain’s top advertiser, spending £120 million on its brands, is pleased with the deal in that it allows it to cut costs by negotiating a long-term discount for its advertising.
Granada and Carlton Communications are pleased because, even though they have effectively given Unilever discounted airtime, the huge deal comes as a much needed tonic after the failure of their interactive joint venture, ITV Digital. Both companies are due to reveal disappointing results this week and have been the subject of merger rumors since the downturn in the advertising market a year ago.