Iceland has split with Karmarama after seven years as it moves its advertising in-house.
The supermarket told Campaign that it is not looking for a new agency and is instead growing its in-house capabilities.
"Having developed our own in-house creative and production capabilities in recent months, we have decided it’s the right time to try a different approach as we head into 2019," Neil Hayes, marketing director at Iceland, said. "We’re parting on good terms and would like to thank Karmarama for all the hard work and passion they have displayed for the Iceland brand over the years."
Iceland appointed Karmarama as its lead agency in 2014 after working with the shop on a project basis for three years. Karmarama created the "Power of frozen" campaign, which helped to drive an 8% rise in sales in the financial year ending 30 March.
Kantar attributed Iceland’s growth to a change in marketing strategy as it focused more on premium products through the "Power of frozen" campaign and the opening of the more upmarket The Food Warehouse stores.
Ben Bilboul, chief executive of Karmarama, said: "We’re extremely proud of the work we’ve done over the last few years to define a fresh direction for the Iceland brand. The results of our 'Power of frozen' platform speak for themselves, with the brand’s quality image scores hitting an all-time high, delivering a +13% willingness to try more frozen food from Iceland. This helped Iceland take its market share to the highest level since 2001 and become one of the fastest-growing retailers in the UK. We part on the best of terms."
Karmarama is currently one of four agencies pitching for the Lidl creative account.