COKE STARTS ITS OWN AD AGENCY
By Adnews Staff
U.S.-based Coca-Cola just won't leave Michael Ovitz alone. The soft drink company has gone into partnership with Walt Disney Co. to operate an ad agency with Coke as the only client. This summer Ovitz left his post as chairman of Creative Artists Agency to be come president of Disney. Four years ago Coke hired Creative Artists to develop creative for the flagship Coca-Cola brand. That contract ended Oct. 1 but the Hollywood talent agency will still handle projects for Coke. The new agency, yet to be named, will be owned and operated by Coke, with Disney holding a small piece - said to be about 10%. The agency will handle Coca-Cola Classic and do projects for Nestea iced tea. The creative team that Ovitz brought to Creative Artists to work on Coca-Cola will go over to the new agency. Coke says the new relationship with Disney won't cause a conflict - in the case of other brands of soft drinks being sold at Disney theme parks, for instance - because it is not an exclusive agreement. Coke also says the deal won't affect relationships with its other agencies, nor will it change existing co-marketing contracts with Disney. Coke had been with McCann-Erickson Worldwide of New York for almost 40 years when the creative part of the account was moved to Creative Artists. Sergio Zyman, the Atlanta-based chief marketing officer of Coca-Cola, says the advertising from Creative Artists has been very successful. According to Zyman, Coca-Cola sales grew 8% in 1994, more than double the industry's overall growth rate.