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Insiders Scramble to Gauge Impact of Coke-P&G Monster Merger

Company and ad executives say it's too soon to tell whether accounts will shift as a

Unnamed venture will start with annual sales of $4 billion
result of the planned joint marketing venture between Coca-Cola Co., Atlanta, and Procter & Gamble Co., Cincinnati. The companies overnight announced plans to merge forces to market their respective juice and snack brands. The yet-unnamed venture will have annual sales of more than $4 billion. The venture will house brands including Minute Maid, Sunny Delight and Pringles. P&G's advertising for Pringles, handled by Grey Global Group's Grey Advertising, New York, totaled $26 million for the first 11 months of 2000, while its advertising for Sunny Delight, handled by Publicis Groupe's Saatchi & Saatchi, New York, totaled $24 million for the same period, per Competitive Media Reporting.

Coke's Minute Maid Co., for which Bcom3's Leo Burnett is agency of record, spent a total of $32 million during January-November of 2000. Although the added distribution P&G will gain from the venture has been cited as a motivator of the deal, one industry exec speculated the deal signifies P&G will likely unload the food brands not shifted to the venture, including Folgers, Millstone, Crisco and Jif. P&G said there are no immediate plans to divest the remaining brands.

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