Frito-Lay Shifts Lays, Cheetos Out of BBDO

Marketer Spent $81 Million on the Brands Last Year

By Published on .

CHICAGO (AdAge.com) -- Frito-Lay, reshuffling agency assignments on some of its largest brands, has shifted creative duties on its Lays and Cheetos brands, both previously handled by BBDO, to Element 79 and Goodby, Silverstein & Partners, respectively. Frito-Lay spent a total of $81 million on the two brands last year.
Frito-Lay spent a total of $81 million on its Lays and Cheetos brands last year.
Frito-Lay spent a total of $81 million on its Lays and Cheetos brands last year.

All three shops are part of Omnicom Group.

While it is losing the two major chip brands, BBDO is gaining work on a new product, a fruit- and vegetable-crisps line called Flat Earth. It will work on Flat Earth as well as Sun Chips (an account the agency already held) and what the marketer called "portfolio initiatives" that are believed to be corporate health-and-wellness-related assignments. The BBDO accounts will be housed in a new, Toronto-based subsidiary called Juniper Park.

The Juniper Park venture was established in April to handle growth and innovation brands, and, by landing on the health-and-wellness side of the business, it seems poised to do just that at Frito-Lay. Increasing regulatory and consumer pressure is expected to push food marketers to spend more on health-conscious offerings such as Sun Chips and less on less-wholesome fare such as Cheetos.

'Greatest pool of talent'
Confirming the moves, a Frito-Lay spokesman said: "Consistent with PepsiCo's move several years ago to bring all its creative work under the Omnicom family of agencies and provide the company with the greatest possible pool of talent, Frito-Lay has expanded the roles of Element 79 to work on the Lays brand and Goodby, Silverstein & Partners to work on the Cheetos brand."

Frito-Lay spent $68.3 million on Lays last year, according to Ad Age's Megabrands report, while Cheetos received $12.8 million in spending.

Goodby's win of Cheetos adds to its existing work on Doritos. And Element 79's Lays win complements its existing Frito-Lay portfolio of Tostitos and Fritos.

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Contributing: Alice Z. Cuneo
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