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DAN WIEDEN AND Howard Schultz have mended a few broken bridges between their organizations. But last week, reacting to what it saw as Starbucks' micromanagement, waffling and shift to a jump-ball approach for future ad assignments, Wieden & Kennedy took the unusual step of quitting the business.
During the four years that Wieden & Kennedy, known for creative and effective ads for marketers such as Nike and PiScG, toiled for Starbucks, a coffee chain built on word-of-mouth and grass-roots marketing, there were a lot of disagreements. Enough friction, in fact, that insiders from both companies lobbied continually to dissolve the partnership. But inevitably, Starbucks' CEO Mr. Schultz and agency founder Mr. Wieden, who are longtime friends, always smoothed things over-until last week.
"Wieden always felt like it was a one-way relationship," said an executive familiar with the matter. "They felt like they presented a way to drive the brand forward, and Starbucks wasn't receptive." The agency wouldn't comment beyond its statement from Mr. Wieden in announcing the resignation: "There are times when it just makes sense to part ways with a client," he said. "In this case, this seems to be the best decision for both parties."
Executives with knowledge of the situation said Starbucks was simply a very frustrating client for Wieden, an agency that other marketers have described as unusually honest in...