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CME drops Chi-Chi's due to compensation

Campbell Mithun Esty, Minneapolis, resigned as creative agency for Chi-Chi's, citing differences over compensation. The restaurant chain will return creative to media agency Evans Hardy & Young, Santa Barbara, Calif. CME won creative on the $12 million account last December.

Burnett opens N.Y. 'guerrilla' agency

Leo Burnett Co. opened Vigilante, New York, a "guerrilla" agency specializing in marketing to urban consumers. Marc Stephenson Strachan, former president of Middleman L.E., a consultancy that specialized in urban markets, is chief marketing and operations officer; Danny Robinson, former creative group head at ad and marketing company Guild Group, is chief creative officer.

Kennedy, colleagues urge FCC to study liquor ads

U.S. Rep. Joseph Kennedy (D., Mass.) and 24 other members of Congress urged new Federal Communications Commission Chairman William Kennard to start an official inquiry into liquor ads. In a letter, the legislators said they were "concerned that left unchecked, our nation's airwaves will become flooded with additional messages that drown our children in images of . . . success to be gained by drinking liquor." Mr. Kennard has said he favors an inquiry.

NARB prompts AT&T to revise Web ad claims

AT&T Corp. said it will modify future TV and print ads for its Web Hosting Services after a National Advertising Review Board panel found the ads potentially misleading. MCI Communications Corp. had challenged the AT&T ads, saying copy that referred to AT&T as "the most powerful network in the world" suggested to consumers that AT&T offered the most powerful Internet network. AT&T said the line referred to its telecommunications network. The NARB finding confirmed an earlier ruling by the Council of Better Business Bureaus' National Advertising Division that said the AT&T copy should be modified. AT&T said it disagreed with the NARB ruling but will make modifications. McCann-Erickson Worldwide, New York, produced the original ads.

Newspaper ads up 8.9% through 3rd quarter

Ad spending in newspapers grew 8.9% for the first three quarters of 1997, vs. the same period a year ago, the Newspaper Association of America said. Third-quarter results show national ads grew 13.28% to $1.3 billion, classifieds up 9.53% to $4.1 billion and retail up 4.98% to $4.6 billion.

Canadian gov't forces end to postal strike

Back-to-work legislation ended the Canadian postal strike Dec. 4. The two-week stoppage had cost direct marketers an estimated $530 million in lost business, the Canadian Direct Marketing Association said. Postal union President Darrell Tingley called the legislation "draconian" and promised workers will make it hard for Canada Post to move mail smoothly, citing the direct marketing association as one of the union's targets.

Gorby returns to limelight in Pizza Hut commercial

Former Russian President Mikhail Gorbachev appears with his granddaughter in a new Pizza Hut spot in which fellow customers credit him for improving their lives with "things like Pizza Hut." The ad was shot in Moscow but is more likely to run outside Russia given Mr. Gorbachev's unpopularity at home. BBDO Worldwide is Pizza Hut's agency of record for Russia.

GM's Wright shifts to Olds

Buick Riviera Brand Manager Michael Wright was promoted to marketing services manager of General Motors Corp.'s Oldsmobile division, succeeding Steve Shannon, who is moving to the marketing staff of GM International Operations. At Buick, Phillip Risinger was named national advertising manager for Buick brand, Regal and Century advertising, from account supervisor on Xerox Corp.'s U.S. customer operations at Y&R Advertising, New York.

Heinz elevates Johnson to CEO

As expected, H.J. Heinz Co. named President-Chief Operating Officer William Johnson its next CEO. Chairman Anthony J.F. O'Reilly is giving up the position. Mr. Johnson previously had served as CEO of Heinz's Star-Kist Foods and CEO of Heinz Pet Products.

Chrysler's Liebler rises to VP-marketing

Chrysler Corp.'s board elected VP-Communications A.C. "Bud" Liebler VP-marketing. He succeeds James MacDonald, who switches to VP-sales and service. Exec VP-Product Development Thomas Stallkamp was elected president, a post vacant since Robert Lutz moved to vice chairman a year ago. James Holden, Chrysler's exec VP-sales and marketing, adds general manager-minivan operations to his title.

Pharmavite supplements acc't goes to Burnett

Pharmavite Corp. assigned its Nature's Resource herbal supplements to Leo

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