At the end of last week, news broke that Sir Frank Lowe, founder and former global chairman of Interpublic Group's Lowe, was starting a new advertising agency. On Thursday when the news broke it was rumored that Paul Weinberger, chairman of Lowe's London office and top executive on its pan-European Tesco account, resigned so that he could become a partner at Frank Lowe's startup. There were also rumors of the Tesco account following Weinberger to the new startup.
Today Lowe Worldwide lost its £45m Tesco advertising account to Sir Frank Lowe, according to sources via Brand Republic, as the senior creative team (Sam Cartmell senior copywriter at Lowe for 10 years and Jason Lawes senior Art Director at Lowe for 8 years) on the account quit to join the start-up agency.
Tesco and Lowe are currently in meetings to sort out the future of the account, with an announcement expected at the end of the day.
An issue that could prove a sticking point with the Tesco work is the sheer volume of ads that Lowe produces on the account -- an estimated 1,900 pieces of work a year.
This would make it almost impossible for a small start-up to take over the account lock, stock and barrel. It is believed that that is what this afternoon's negotiations could be regarding.