PepsiCo: one media AOR?

The Canadian divisions of PepsiCo are considering the consolidation of their media buying operations with a single agency.Steve Davis, vice-president of marketing and national sales for Pepsi-Cola Beverages Canada, says PepsiCo is exploring ways in which a consolidation might improve its...

The Canadian divisions of PepsiCo are considering the consolidation of their media buying operations with a single agency.

Steve Davis, vice-president of marketing and national sales for Pepsi-Cola Beverages Canada, says PepsiCo is exploring ways in which a consolidation might improve its overall competitive stance.

Pepsi’s annual media budget issaid to be in the $20 million range.

The other PepsiCo units, Pizza Hut, Hostess Frito-Lay and Kentucky Fried Chicken, account for about another $30 million.

An unidentified number of media-only and full-service agencies are in the running for the account.

The list includes PepsiCo’s four main Canadian ad agencies: FCB/Ronalds-Reynolds (Pizza Hut), McKim Baker Lovick/BBDO (Hostess Frito-Lay), Young & Rubicam (Kentucky Fried Chicken) and J. Walter Thompson, which has been with Pepsi-Cola for more than 25 years.

Brand planning will still be handled by the incumbent agencies, but media planning could move to the media agency at a later date.