Interpublic Loses PepsiCo Brands to Omnicom

Gatorade, Tropicana Among Accounts Worth $350 Million

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NEW YORK (AdAge.com) -- PepsiCo and Quaker Oats Co. announced today it was shifting more than $350 million worth of work from Interpublic Group of Cos.' Foote, Cone & Belding Worldwide, Chicago, to the Omnicom Group.

The move involves both creative and media purchasing for three market-leading PepsiCo brands (Gatorade, Tropicana and Aquafina), as well as several food brands in Quaker Oats. The move had been rumored since Interpublic acquired True North Communications earlier this year.

Interpublic had long handled the bulk of the work for Coca-Cola Co., archrival to Pepsi.

Gatorade, the market leader in sports drinks; Tropicana, the No. 1 refrigerated orange juice; and Aquafina, the top bottled water in the country, are worth a combined $119 million.

Quaker Oats spent $251 million in measured media during 2000, according to Taylor Nelson Sofres' CMR. FCB handled virtually all of the bulk of that advertising, including $83 million against Quaker Instant Oatmeal, $16 million on Life cereal and $27 million on Quaker's Chewy Granola and Fruit & Oatmeal bars.

Interpublic sibling Suissa Miller, Los Angeles, handles advertising for Quaker's Rice-a-Roni and Pasta Roni brands, billings for which are estimated at roughly $15 million. An agency executive close to the situation said Suissa Miller is expected to retain that business.

PepsiCo said the advertising consolidation was an effort to consolidate its marketing following the completion of last month's merger with Quaker Oats.

"The consolidation of our advertising within one company is one of many efforts across PepsiCo to take full advantage of our combined strength," said Robert Morrison, PepsiCo vice chairman, and chairman, president and CEO of Quaker Oats Co. "PepsiCo has had a great relationship with Omnicom that dates back nearly 40 years, and we can realize very significant benefits by concentrating all of our advertising within that network."