The cola wars have a new front and it runs straight through Omnicom. Weeks after PepsiCo ended a relationship with the holding company that had lasted almost 30 years, Coca-Cola has handed it the keys to North America. WPP will maintain its global remit outside of Japan and South Korea, which remain with Dentsu.
The holdco has won Coke’s U.S. and Canada media account, according to two separate sources with knowledge of the deal. It’s the slice of the business Publicis gave up when it took PepsiCo. That account is worth an estimated $700 million to $800 million. Omnicom’s leadership sealed it in a sit down with Coke’s senior marketing team, said one of the sources. During those exchanges, the holdco’s senior team including CEO John Wren made the case that Coke would get a team built for it, with no hand-me-downs from the PepsiCo account. It promised senior talent, savings and tech innovation.
It also bought some other, obvious advantages in the room. Omnicom is the world’s largest media house following its absorption of IPG, and boasts billings of $75.6 billion, roughly 31% of billings handled by global marketing services groups. Work will commence Dec. 1.
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