IHOP Corp. hired Heil-Brice Retail Advertising, Newport Beach, Calif., to handle broadcast creative on its estimated $20 million account after parting with Kirshenbaum Bond & Partners West, San Francisco. The split "was in the mutual interest of both firms," an IHOP spokesman said, adding that the two parted amicably. Kirshenbaum broke its first International House of Pancakes work only last September after being chosen over Bozell, Costa Mesa, in March 1999 following a review. The new agency was selected for its track record in raising awareness and building traffic, said an executive close to the review. IHOP last month selected Horizon Media, Los Angeles, to handle media (AA, May 22).
Mangosoft taps Mullen for $20 mil ad account
Software developer Mangosoft Corp. selected Mullen, Wenham, Mass., to handle its $20 million account. Other finalists included the Martin Agency, Richmond, Va., and Temerlin McClain, Irving, Texas. Pile & Co., Boston, handled the review. Mangosoft split with Welch, Nehlen & Groome, Garden City, N.Y., in May 1998.
Bristol-Myers Squibb juggles accounts
Bristol-Myers Squibb Co. realigned part of its agency roster by product lines, effective Oct. 1. The marketer consolidated all its Clairol hair color brands, including Nice'n Easy and Revitalique, at FCB Worldwide from Kaplan Thaler Group, both New York. Kaplan Thaler retained haircare lines Herbal Essences and Aussie, and added Infusium from FCB. Internationally, FCB will handle all the haircare brands. The marketer also awarded D'Arcy Masius Benton & Bowles, New York, its Mead Johnson Nutritionals products in the U.S. and abroad, including Boost, Enfagrow, Enfamil and Viactiv. FCB and Parsippany, N.J.-based CommonHeath were among the previous agencies, handling Viactiv and Enfamil, respectively.
Pepsi to cut Slice, Storm; launch Sierra Mist soda
PepsiCo will replace its flagging Slice and Storm soft drinks with an entry called Sierra Mist, to compete with Coca-Cola Co.'s Sprite, as PepsiCo struggles to find relevance in the lemon-lime segment. The soft-drink marketer is expected to launch the product during the fourth quarter, following positive tests vs. Sprite and Cadbury Schweppes' 7UP. BBDO Worldwide, New York, will handle advertising.
Sprint is first major telco with Internet Call Waiting
Sprint Corp. on June 22 became the first major telecommunications provider to introduce Internet Call Waiting. The service targets the millions of single-line households that miss calls while surfing the Net. The Internet Call Waiting service is being bundled with the Sprint 1000 long-distance calling plan. The call waiting service will be offered free for six months to consumers who sign up for Sprint 1000; after that period, Internet Call Waiting will cost $4.95 a month. Sprint will support the new plan with up to $15 million in on- and offline advertising via McCann-Erickson Worldwide, New York.
Change sizzles at fast-feeders
One expansion-minded fast-food chain selected a new agency last week, while two other well-known competitors went through top-level management changes:
* Krystal Co. chose McKinney & Silver, Raleigh, N.C., to handle its $15 million to $18 million account. The southeastern hamburger chain also had been considering Ames Scullin O'Haire and Austin Kelley Advertising, both Atlanta. Wannamaker Associates was the review consultant. Former agency Ogilvy & Mather didn't participate in the review. "We're trying to aggressively grow this business. We have said we will double our size in two years," said Gordon Davenport, VP-marketing and development at the 380-unit chain. McKinney did project work for CKE Restaurants' Hardee's Food Systems several years ago, but this is the first major fast-food account for the agency, said Don Maurer, president-CEO.
* In a major shift at Burger King Corp., CEO Dennis Malamatinas is leaving and Burger King parent Diageo said it's exploring "strategic options" that could include spinning off part or all of the fast-food chain in a stock sale. Diageo said it has begun a search for a new worldwide head of Burger King who could lead a future independent company. On an interim basis, Diageo named Colin Storm, CEO of its Guinness unit, to be CEO of Burger King. Diageo said Stuart Fletcher, managing director of developing markets at Guinness, will "assume the lead in management" at the brewing company. Regarding Burger King, Diageo said, "We believe that a partial flotation [of up to 20%] of the company, which opens the possibilities of a demerger or a full flotation at a future date, is the [strategic] option we must develop." A BK spokesman said a new president for Burger King North America, a post vacant since January, wouldn't be named until a permanent Burger King CEO is hired. Lowe Lintas & Partners Worldwide, New York, handles Burger King in the U.S. Burger King's U.S. franchisee association is exploring a possible spinoff of Burger King from Diageo.
* Andrew Puzder, 49, was named president-CEO of the Hardee's Food Systems chain of CKE Restaurants. He previously as exec VP-general counsel at CKE. Rory J. Murphy, Hardee's president-chief operating officer since 1997, the year CKE acquired the fast-feeder, shifts to exec VP-operations at CKE.