NEWS: O&M lands 7-Up as PepsiCo realigns soft-drinks tasks

PepsiCo has moved its international advertising for the fizzy drink, 7- Up, from the BBDO network to Ogilvy and Mather, a move that will relieve Abbott Mead Vickers BBDO of its pounds 1 million 7-Up advertising business in this country.

PepsiCo has moved its international advertising for the fizzy drink, 7-

Up, from the BBDO network to Ogilvy and Mather, a move that will relieve

Abbott Mead Vickers BBDO of its pounds 1 million 7-Up advertising

business in this country.



The win will add another dollars 15-20 million to the global billings of

O&M, which already handles the rival soft drink, Lucozade. However, an

agency spokesman said neither Lucozade’s parent company, SmithKline

Beecham, nor PepsiCo, considered there to be a significant conflict

between the two.



O&M’s new 7-Up assignment spans the 120 countries in which PepsiCo

markets the drink. It does not include the US, where the brand is

marketed by Cadbury Schweppes. Cadbury awarded 7-Up’s advertising to

Young and Rubicam New York in July.



The 7-Up shift consolidates PepsiCo’s so-called ‘flavour brands’ within

O&M and brings worldwide PepsiCo billings for O&M to dollars 100

million. O&M already works for PepsiCo on flavoured drinks such as

Mirinda, an orange-flavoured soft drink, and the Radical Fruit Company

range.



BBDO continues to handle PepsiCo’s core cola business including brands

such as Pepsi-Cola and Pepsi Max.



A PepsiCo spokesman in the US said: ‘We have two very strong agency

partners - O&M and BBDO. We believe very strongly in the two-agency

relationship. Because of the size of our business it makes good

strategic sense to consolidate our flavour brands within one agency. O&M

has done some fantastic work on Mirinda and it is logical to take this

step.’



He added: ‘This gives BBDO the opportunity to concentrate on our core

cola business which represents 70 per cent of our total volume.’



Mike Walsh, the O&M chairman, was unavailable for comment as Campaign

went to press.