Equity Becomes EMAK, Expands Beyond Premiums

Equity Marketing changed its corporate name this month to reflect its global growth and disparate marketing services.

Now called EMAK Worldwide, the Los Angeles-based agency touts marketing services beyond its flagship premiums business. EMAK continues to shop for acquisitions in direct marketing, interactive, events and multicultural marketing.

“We want to add vertical capabilities,” said Bret Hadley, EMAK president of client services and operations.

Premiums-related work still accounts for 60% of EMAK’s revenues, but a spate of acquisitions has broadened its capabilities. EMAK expanded its non-premiums business by acquiring Ontario-based SCI Promotion Group in September 2003; the shop handles promotional marketing for nine of the top 10 retail department stores in the U.S., including May Co., Sears, Kohl’s, Nordstrom’s and Macy’s. Then there’s Chicago shop Upshot (acquired in July 2002) and U.K. shop Logistix (acquired in July 2001), which bring account-specific retail and kids’ marketing expertise, respectively.

EMAK also beefed up its premiums work when it bought Minneapolis shop Johnson Grossfield in February. That brought in Johnson Grossfield client Subway Sandwiches & Salads to extend EMAK’s business in kids’ meal premiums beyond its core client, Burger King. Other key clients include Kellogg Co. (in North America and the U.K.), Procter & Gamble and Disney (both via Upshot) and Diageo.

“Premiums are a tactic, the end result of strategic work,” said Bret Hadley, EMAK president of client services and operations. “We want to be in a position to execute other tactics when it’s appropriate to clients’ strategy.”

EMAK’s entertainment marketing division in Los Angeles retains the Equity Marketing name.

EMAK also rebranded its Equity Toys branded consumer products division as Pop Rocket. The unit, which accounted for 16% of EMAK’s fiscal 2003 revenues, launched Baby Einstein toys (based on the successful video line) in January via Target and Babies R Us stores, with distribution set to expand to all major retailers in 2005.

Equity ranked No. 17 in the 2004 PROMO 100, reporting 2003 net revenues of $40 million, up 12% over 2001.