Coke hands Sprite and Fanta to Ogilvy

ASIA-PACIFIC: The long-running Coca-Cola account review of its carbonated beverages is drawing to a close in Asia-Pacific, with Ogilvy & Mather picking up a sizeable chunk from one of the largest business shifts on Madison Avenue. It is understood that O&M has won the Sprite, Diet Sprite and Fanta brands across 11 regional markets, excluding Japan. Sources say O&M will take over the three brands in January 2002. With monitored spend of about US$32 million for the year to September, the shift is believed to be O&M's biggest win this year. Although the Interpublic Group did gain most of the creative assignments that Coke shifted in the US last month, the realignment has, however, dealt a new blow to several of its McCann-Erickson agencies in Asia. Its Hong Kong agency, which only picked up the carbonated business last year, will now be left with the Coca-Cola and Schweppes brands, the latter being largely inactive. Another agency affected by the shift is Leo Burnett, which handles Sprite in India, Taiwan, Thailand and China, as well as projects for Fanta in China. However, IPG's other agency, FCB, has been more fortunate. The agency was awarded Coke's Powerade, Hi-C and Minute Maid after Pepsico fired it because its parent company is the brand steward for Coke's flagship brand. Despite the realignment, sources believe Coke's "think local, act local" strategy will provide agencies which lost out with an opportunity to appeal the decision. A Burnett spokesperson said: "All local brand assignments remain at the discretion of Coke's local marketing managers, and Burnett retains an extensive relationship with Coke in the region, with local assignments in six markets." A Coca-Cola spokesman declined comment, saying only that the realignment for Asia-Pacific was still being worked out and details would be finalised by mid-November.

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