Quaker Oats Co., as expected, made sweeping management changes that eliminated a top tier that includes James Doyle, exec VP-worldwide beverages; Douglas Mills, exec VP-U.S. and Canadian Quaker Food Products; and Barbara Allen, exec VP-international foods. Quaker's new Chairman-President-CEO Robert Morrison boosted a number of executives, most notably Susan Wellington, who was promoted to president, U.S. beverages, from VP-marketing, Gatorade, and Harry Dent, who moves to president, ready-to-eat cereals from VP, ready-to-eat cereals.
New owner to keep Havas Advertising
The anticipated buyout of Havas by its major shareholder, Generale des Eaux, was announced March 9 with guarantees that Havas Advertising (which includes the Euro RSCG and Campus agency networks) will not be sold off. "Not one share of Havas Advertising is for sale," said Jean-Marie Messier, Generale des Eaux chairman. Havas, which includes other sizable business units in addition to Euro RSCG, would be valued at slightly more than $3.8 billion. The GdE takeover bid will be presented to the general assemblies of Havas and Generale des Eaux for a vote on May 11. Structurally, the merged company will be divided into two basic sections: GdE's work in water services and construction and a communications group. The communications division will include a telecommunications unit, an audiovisual group and an affiliate called Havas, which will consist of the company's publishing, multimedia, online and advertising activities. Havas Advertising Chairman Alain de Pouzilhac said his agency's hunt for a U.S. ad agency partner was still progressing.
Marketing Store, MB Sales merging
Chicago promotion house MB Sales is merging with promotion agency Marketing Store, London, to create one agency that claims $300 million in billings and a client list including McDonald's Corp., Shell International, Nestle, PepsiCo and General Motors Europe. The agencies are privately held. The combined shops will be known as Marketing Store, with headquarters in Westmont, Ill.
Nabisco Int'l media settles at FCB
Nabisco International said it will consolidate media buying and planning at Foote, Cone & Belding's New York office. Nabisco last April split its $60 million media assignment between FCB and McCann-Erickson Worldwide. Under the original assignment, carried out under then-President Christopher Coughlin, FCB was awarded creative and McCann, New York, was given media. Elizabeth Culligan, the former Nabisco Biscuit Co. VP-marketing who took over as Nabisco International president last month, said under the new alignment "integration of creative and media assignments will generate greater efficiencies in our advertising and facilitate improved relationships within individual countries."
Wolters, Reed Elsevier merger called off
Dutch publisher Wolters Kluwer and Anglo-Dutch publisher Reed Elsevier have canceled merger plans due to matters that arose in the course of financial due diligence. The companies also were concerned about restrictions that might be placed on the deal from U.S. and European regulators.
Merger costs wipe out True North's '97 gains
True North Communications, in its first financial report after merging with Bozell, Jacobs, Kenyon & Eckhardt late last year, said the combined company made $55.2 million profit in 1997, up 26.8%, on revenues of $1.2 billion, up 22% from 1996. After $131 million in merger charges and other costs, however, TN reported a $50 million loss compared to net income of $38 million in 1996. For the fourth quarter, revenue grew to $343 million from $289 million producing net income (before charges) of $26 million compared to $19 million in the fourth quarter of 1996. After merger-related and other charges, however, TN showed a net loss of $74 million for the quarter.
Cadillac unveils '98 Seville launch plans
General Motors Corp.'s Cadillac Motor Car Division disclosed marketing plans for the launch of its 1998 Seville. Humorous TV ads from D'Arcy Masius Benton & Bowles, Troy, Mich., feature guest appearances by TV sitcom characters. National TV ads break the week of April 6. Print, outdoor and spot radio support. The tagline is "It's what's next."
Pepsi starts test of Storm in Colorado
Pepsi-Cola Co. said it will begin testing Storm caffeinated lemon-lime soft drink in Denver, Colorado Springs and Pueblo, Colo. Print, point-of-purchase material and sampling support the launch, followed by TV spots from BBDO Worldwide, Los Angeles. Initial tag: "Take your thirst by Storm." Separately, Pepsi this week breaks a humorous TV spot with Los Angeles Laker Shaquille O'Neal. BBDO Worldwide, New York, handles.