In an initiative led by R3, the shift follows the formation of the integrated, 40-person unit late last year to drive the Coca-Cola brand in the run-up to the 2008 Olympics (Media, 3 November 2006). Headed by MD Wasim Basir and group CD Bere Mitchell, Red Lounge drew on talent from five key agency partners in China - McCann Erickson, Starcom, Wwwins, Heartland and Momentum.
It is not known how Leo Burnett's management of the unit will affect current Red Lounge staff going forward. All communications support for Coca-Cola is expected to be driven through Red Lounge, leaving McCann's role on the Coca-Cola business in China unclear.
Leo Burnett China MD Donald Chan confirmed that his agency is "going to be part of Red Lounge" but refused to elaborate further. Coca-Cola representatives were unavailable for comment at press time.
