In the wake of a global agency consolidation announced last week by U.S.-based Kimberly-Clark, J. Walter Thompson of Toronto has been forced to resign its account with Scott Paper.

With Texas-based Kimberly-Clark announcing that its family-care business would be consolidated with WPP agencies J. Walter Thompson and Ogilvy & Mather, a conflict presented itself for the Canadian JWT operation, which has had Scott Paper of Canada on its roster for more than 40 years.

Unlike in the rest of the world, two separate companies control Kimberly-Clark’s brands in Canada.

The division of the Canadian market came about following Kimberly-Clark’s late 1995 purchase of Florida-based Scott – a deal that was not approved in Canada by the federal Competition Bureau. As a result, K-C sold its Canadian interests to Scott Paper here, and the two companies signed a 10-year trademark and technology licensing agreement.

Scott Paper, based in Mississauga, Ont., was subsequently bought in 1997 by Kruger, a privately-held tissue and pulp and paper manufacturer based in Montreal.

JWT and Bozell Worldwide, both of Toronto, share advertising duties for Scott Paper, which holds the marketing rights to such K-C brands as Cottonelle, Viva and Scott.

Kimberly-Clark’s Kleenex brand is already with WPP agency Ogilvy & Mather of Toronto.

Annual spending for Cottonelle in Canada, handled by Bozell, is more than $2 million, while the Kleenex media buy is less than $1 million.