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[Troy, Mich.] Kmart demanded that the two agencies pitching its anticipated $250 million creative and media account accept a $25,000 payment in exchange for the rights to any ideas presented to the struggling retailer, said executives familiar with the situation. The retailer also sought a high level of finished work to be presented at pitches scheduled for last week. A Kmart spokesman declined comment. Representatives for the shops, Grey Global Group's Grey Worldwide, New York, and Interpublic Group of Cos.' Campbell-Ewald, Warren, Mich., declined to comment or did not return calls.

Frito-Lay's Stax ads to break on Emmys

[PLANO, TEXAS] Frito-Lay said the national rollout of Lay's Stax potato crisps will be complete by the end of August with a large scale print and TV campaign for the brand to break Sept. 21. Spending was not disclosed. Ads from Omnicom Group's BBDO Worldwide, New York, will break during Fox TV's Emmy Awards telecast with Lay's spokesman Dana Carvey portraying a cast of characters getting creative with a "deck" of Lay's Stax.

Bates' Cadbury work is moving to McCann

[Parsippany, N.J.] Cadbury Schweppes said it awarded creative for its non-chocolate confectionery brands, formerly at Cordiant Communications Group's Bates Worldwide, to Interpublic Group of Cos.' McCann-Erickson Worldwide after a review. Cadbury said spending exceeds $60 million. McCann picks up brands including Dentyne chewing gum and Certs and Clorets breath fresheners in the U.S.; Dandy, V6, and Dirol chewing gums in Europe; and Dee Mints in Latin America. Other agencies in the review were not identified. See AdAge.com aao94c

Hill Holliday picked for 24 Hour Fitness

[San Francisco] Fitness center chain 24 Hour Fitness assigned its anticipated $20 million media buying account to Interpublic's Hill, Holliday, Connors, Cosmopulos, San Francisco. Separately, it began a review for the creative portion of its account with Hill, Holliday and others in contention. Grey Global Group's MediaCom was the media incumbent. Other media contenders were Publicis Groupe's Publicis & Hal Riney, San Francisco, Interpublic's Initiative Media and Havas' Media Planning Group.

Kellogg USA's Mackay gets worldwide post

[Battle Creek, Mich.] Kellogg USA President David Mackay was named president-chief operating officer of parent Kellogg Co., responsible for operations worldwide. Kellogg Chairman-CEO Carlos Gutierrez will focus on broader strategic issues, the company said. In other moves, Jeff Montie, a Kellogg Co. senior VP, was named exec VP-North American morning foods president, from president-morning foods U.S., and assumes responsibility for Kellogg Canada. Exec VP-Chief Financial Officer John Bryant adds operational responsibility for Kellogg's U.S. natural and frozen foods business unit.

Wendy's in local test of lower-fat meals

[Dublin, Ohio] Wendy's International's Wendy's chain is testing four meals under 10 grams of fat in New York, Miami, Philadelphia, Seattle and Columbus, Ohio, supported by TV advertising from McCann-Erickson, New York. Four main dishes, a grilled chicken sandwich, junior hamburger, large chili and plain baked potato, include a side salad with fat-free dressing and a diet soft drink.

Marketing chief leaving Pennzoil-Quaker State

[Houston] Senior VP-Marketing Steve Hanson is leaving Shell Oil Co.'s Pennzoil-Quaker State later this month after having supervised reviews that picked new shops this year for media and Pennzoil creative. A successor is to be named this week, the company said. Mr. Hanson's departure was described as voluntary. Shell acquired the motor oil brands last fall. Omnicom Group's TBWA/Chiat/Day, Playa del Rey, Calif., now handles Pennzoil creative. Tucker Hampel Stefanides & Partners, New York, handles Quaker creative. Interpublic's Initiative Media, New York, now handles media.

P&G set to launch Dawn Power Scrubber

[Cincinnati] Procter & Gamble Co. is set to launch by late this year Dawn Power Scrubber, a battery-operated dish scrubber with replaceable scrubbing heads and dishwash detergent packs, according to retail executives, backed by advertising from Publicis Groupe's Kaplan Thaler Group, New York. Spending was not disclosed. It's the latest in a series of recently launched or soon-to-be launched convenience dishwash products, including Colgate-Palmolive Co.'s Palmolive dish wipes, launched earlier this year, and a new manual dish scrubber from 3M with replaceable heads and dish soap.

FYI . . .

Kraft Foods is preparing the launch of an Altoids brand chewing gum, an executive close to the company said, confirming a report in the Chicago Tribune. LB Works, Chicago, a unit of Publicis' Leo Burnett USA, handles Altoids. ... Robb High, marketing director, North America, at WPP Group's Y&R Advertising, left the agency. An agency spokeswoman confirmed the move. Mr. High did not return calls. Y&R Vice Chairman June Blocklin will oversee new-business initiatives on an interim basis while remaining as head of Y&R's AT&T business. ... On the eve of the new TV season, media agency executives last week said advertisers are standing by the record $9.3 billion media buyers committed in this year's upfront TV market. The buyers estimated only about 5% of the upfront spending proposed to marketers by the agencies in the spring has been pared back, an amount described as "normal." . ... Rayovac Corp. proposed to acquire Remington Products for $332 million in cash and debt assumption, joining battery rivals Energizer Holdings (Schick, Wilkinson Sword) and Gillette Co. (Duracell) in the shaving business. Grey, New York, handles Remington. Condon & Root Advertising, Chicago, handles Rayovac. See AdAge.com aao94g ... New California Lottery Director Anthony Molica last week pledged an "expeditious" new review to select an ad agency but lottery executives declined to be specific about when a request for agency bids would be issued. Grey, Los Angeles, is the incumbent lottery agency. See AdAge.com QwikFIND aao93y ... Tracey Owens to exec VP-worldwide account director on General Motors at relationship marketing agency MRM Partners Worldwide, New York, part of McCann-Erickson WorldGroup. Succeeding Ms. Owens as exec VP-general manager in New York is Joseph McGee, from managing director, BearingPoint, New York (formerly KPMG Consulting). ... Wine Market Council launches its first national ad campaign this fall, a print and Internet effort tagged "Wine. Since 6000 B.C." Ads break in the Sept. 26 People and October issues of USA Today. PR supports. Rock & Wood, Sausalito, Calif., handles. Spending was not disclosed. ... Pfizer tapped roster shop Wunderman, New York, to handle direct and relationship marketing for anti-allergy drug Zyrtec. Spending was not disclosed. Wunderman already works on Pfizer's Pfizer for Living relationship-marketing campaign.

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