Oliver could be off the Sainsbury's menu

SUPERMARKETS group Sainsbury may scrap its advertising contracts with celebrity chef Jamie Oliver and agency Abbott Mead Vickers BBDO in an attempt to cut costs.

It is currently holding talks with Oliver to see whether he would be prepared to lower his £1.2m annual fee or devote more time to developing the food ranges in return for the same money.

But some think Oliver should be dropped altogether as a new face could help relaunch Sainsbury in a different image.

Chief executive Justin King has hired specialist advertising firm Haystack to look at rival agencies to Abbott Mead Vickers BBDO which has worked with them for 25 years and was responsible for bringing in Oliver.

It is a blow to the agency as Sainsbury is its second-largest client and the contract is worth £45m a year.

Sainsbury said: 'This review ensures that we get the best creative output and the best value for money. We may go through this process and change nothing.'