PEPSI SWITCHES AGENCIES
By Adnews Staff
Pepsi-Cola Canada Beverages Ltd. parted ways with J. Walter Thompson Co. Ltd. (JWT) of Toronto last week, ending a 28-year relationship with the agency. Pepsi handed its $10 million advertising account to BBDO Canada Inc. of Toronto. JWT and BBDO were the only two agencies invited to take part in a strategic review initiated by Pepsi a month ago. Pepsi marketing vice-president Jeff Lobb told Adnews that JWT had done good work for Pepsi. But he said the company is always looking to improve its position. Lobb insisted that Pepsi Canada operates independently from its U.S. parent and the switch to BBDO wasn't made because the agency's New York-based shop is Pepsi's international agency of record. Lobb said the review was based on three criteria: the ability to produce global results, capability in strategic planning and the ability to take initiatives to the streets. BBDO was already handling media buying for Pepsi in Canada, while J. Walter Thompson had been responsible for creating the Canadian ads. BBDO also handles the advertising for Pepsico Inc.'s Frito-Lay snack food and Pizza Hut divisions in Canada. JWT president Ted Nation told Adnews last week that he isn't expecting any lay offs at the agencies. JWT new it could possibly lose the account so it has kept a few vacancies open.