PepsiCo To Consolidate Advertising @ Omnicom.

PepsiCo plans to move all the advertising work currently done for it by Foote Cone & Belding Worldwide (FCB) to Omnicom Group, which already handles the bulk of PepsiCo’s advertising.

The shift involves both creative work and media purchasing that was done on behalf of PepsiCo businesses including Gatorade, Tropicana, Aquafina and a wide range of Quaker food brands.

PepsiCo said the advertising consolidation is an important part of a major corporate effort to achieve growth and cost synergies following the merger of PepsiCo and The Quaker Oats Company, which was completed on August 2. PepsiCo
said the decision did not in any way reflect on the quality of the work done by FCB, with which all of PepsiCo’s businesses have had productive relationships.

“The consolidation of our advertising within one company is one of many efforts across PepsiCo to take full advantage of our combined strength,” said Robert Morrison, PepsiCo vice chairman and chairman, president and CEO of The Quaker Oats Company. “PepsiCo has had a great relationship with Omnicom that dates back nearly 40 years, and we can realize very significant benefits by concentrating all of our advertising within that network.”

“We anticipate a gradual and orderly transition of the business over the next several months, during which we will work out the details of how our growing business will be managed within Omnicom,” said Massimo d’Amore, senior vice president of corporate strategy and development.

PepsiCo did not disclose the billings involved in the shift.