Woolworths has extended its relationship with Dentsu on a multi-year basis, Mi3 understands.

The supermarket giant is one of Australia’s largest media accounts with billings north of $100 million.

Dentsu, which in 2018 created a bespoke unit, Woolworths@DAN, to manage the account, continues to handle media strategy, planning and buying across the supermarket group, including the supermarket business, its financial and insurance services, department store Big W and alcohol brands Dan Murphy's and BWS. Atomic 212 manages Dan Murphy's and BWS’ performance media buying.

The rollover of one of Dentu’s largest clients was a top priority for Dentsu Media's chief Danny Bass when he took the reins last August, and follows a one-year extension that was brokered by previous boss Sue Squillaci.

Bass declined to comment on the contract extension. Woolworths said it does not comment on supplier contracts.

Woolworths has been a client of Dentsu (and its forerunner agencies) since 2002 when Harold Mitchell’s eponymous agency won the business.

Prior to leaving Dentsu, former Carat boss Sue Squillace last year pulled off what was viewed as a significant final contribution of her tenure by negotiating a one-year extension with Woolworths, which has now been rolled over under Dentsu Media’s new boss Danny Bass.

Woolworths and Dentsu have quietly gone about shoring up their relationship without a competitive review, in contrast to Coles, which retained Omnicom alongside Deloitte after a highly-publicised and drawn out review process that went down to Publicis Groupe and Accenture Song/Initiative. GroupM had also been in the early running.

Dentsu plays one part of the Woolies’ complex web of media and marketing services, most of which are managed in-house.

Woolworths setup WooliesX to handle digital e-commerce, data and customer. It also has Greenhouse, led by M&C Saatchi, a hybrid bespoke creative agency and retailer media unit Cartology.

Cartology is Woolworths’ dedicated retail media business spearheaded by Mike Tyquin, which is pushing further into off-network shopper and loyalty data-powered media buys across out of home – last year Woolworths acquired Shopper Media for $150 million – as well as BVOD, social and digital channels.

The Woolworths-Dentsu contract extension may dash any plans of WPP-owned GroupM, which after being invited to pitch for Coles was ruled out due to a conflict over its production arm Hogarth, which picked up a substantial chunk of Woolies' contract across production for social, digital, print and audio. That perceived conflict is understood to have ended the WPP's chance of landing Coles.

Publicis may have also had designs on the Woolworths business. Zenith houses Aldi, which it retained last year under a global review with former marketing boss Mark Richardson running the rule over suppliers locally, while Starcom holds Metcash/IGA. Spark Foundry does not have a major supermarket client within its walls.