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Maxwell House Lost By Ogilvy

By RANDALL ROTHENBERG
Published: May 27, 1989

Less than two weeks after relinquishing its independence to the WPP Group, the
Ogilvy Group lost another battle yesterday when Kraft General Foods dropped Ogilvy
& Mather as its advertising agency for Maxwell House coffee and gave the account to
D'Arcy Masius Benton & Bowles/ New York.

Maxwell House, once America's best-selling coffee, has lost that ranking to Procter &
Gamble's Folger's. Last year, Folger's increased its share to 31.8 percent of the
market, up from 28.2 percent in 1986, while Maxwell House's market share declined
to 19 percent, from 20.7 percent in 1986, according to John C. Maxwell Jr., an
analyst with Wheat First Securities in Richmond.

General Foods' total share of the coffee market, including the company's Sanka,
Yuban and Brim brands, is now 33 percent. A Bitter Loss

Coming so soon after a merger that its top managers initially opposed, the loss of the
approximately $50 million account is an especially bitter one for Ogilvy. Maxwell
House was one of the agency's oldest and most prestigious clients. In the 31 years it
has held the account, the agency created memorable television commercials
featuring musical percolators and the slogan ''Good to the last drop,'' a line
apocryphally ascribed to President Theodore Roosevelt.

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''Obviously, it's a tough blow for us, but you'll see how tough we really are,'' said
Kenneth Roman, the Ogilvy Group's chairman.

Raymond Viault, the president of the Maxwell House Coffee Company, said Ogilvy's
merger into WPP, which also owns the J. Walter Thompson ad agency, had no
impact on the decision to switch agencies.
''We chose D.M.B.& B. on the basis of the strategy they brought forward and the
expression of that strategy in advertising executions,'' he said. Second Victory in a
Week

Gaining Maxwell House was the second victory in a week for D.M.B.&B./U.S.A. A
week ago, the agency was selected to handle half of the Burger King Corporation's
$200 million advertising account.

The account review began in February with General Foods asking its four agencies -
in addition to Ogilvy and D.M.B.&B., they are Grey Advertising and Young &
Rubicam - as well as Leo Burnett for strategic ideas. Burnett demurred, but the
others presented marketing plans and speculative creative work.