Sorrell Says Heinz-Kraft Merger is 'Cost, Not Revenue-Driven'
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WPP CEO Martin Sorrell said that the proposed merger between Heinz and Kraft Foods is “cost-driven, not revenue-driven,” and suggested that short-sighted marketers are “focus[ing] on their boots, not on horizons,” during a session at Advertising Week Europe in London today.
Mr. Sorrell said, “Growth is tepid and clients don’t have pricing power in the U.K. we are down to zero inflation. In those circumstances, cost is king and efficiency is king. We need to try and get clients to focus on potential growth opportunities.”
In answer to a question about his rivalry with Publicis Groupe Chairman-CEO Maurice Lvy, who earlier this week compared Mr. Sorrell to a scorpion, the WPP leader said of his rival, “I think it’s becoming an obsession from his point of view and that’s probably unhealthy… Last year was a really difficult year for him in the sense that he lost out on a grand vision.”
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