PepsiCo acquires Tropicana

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PepsiCo, Purchase, N.Y., added a new weapon its war against Coca-Cola Co., Atlanta, today with the announcement it has acquired for $3.3 billion Seagram Co.'s Tropicana unit, Bradenton, Fla. The move gives PepsiCo an orange juice brand to rival Coca-Cola's Minute Maid. PepsiCo said Tropicana will be operated as a separate division from Pepsi-Cola Co., its soft-drink business. Foote, Cone & Belding, New York, handles Tropicana's estimated $42 million U.S. account. Agency President Charlie Taney said FCB hadn't spoken to Tropicana yet, but said since the company will be separate from Pepsi-Cola, he is hopeful the account will remain. FCB, Chicago, handles some Pepsi-Cola competitors, including Quaker Oats Co.'s Gatorade brand and several Cadbury Schweppes brands, including A&W root beer, Schweppes ginger ale and mixers. Asked about potential agency changes, a spokesman for PepsiCo said it is "way too early to speculate on such matters."

Copyright July 1998, Crain Communications Inc.

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