PepsiCo Drops Element 79 From Gatorade, Tropicana Accounts
PepsiCo has shifted its Gatorade and Tropicana accounts from ad agency Element 79, Chicago, to TBWA/Chiat/Day, L.A., "throwing [Element 79's] future into question," according to Suzanne Vranica of the WALL STREET JOURNAL. A PepsiCo spokesperson: "As we look at the businesses today, we believe Gatorade and Tropicana could benefit from a partnership change. Both world-class brands demand new, creative thinking to fuel their growth." Vranica notes Element 79 had handled the accounts for six years and created a "number of memorable commercials for Gatorade" featuring Michael Jordan, Tiger Woods and Mia Hamm. But a source said that PepsiCo has been "dissatisfied with Element 79's recent creative work." Despite being the market leader in the sports-drink category with nearly an 80% share, Gatorade's growth "has slowed, thanks in part to the growing popularity of water and fortified waters." A TNS Media Intelligence study shows PepsiCo spent an estimated $175M on Gatorade ads in '07, and the company is "eager to revive" the brand. In choosing TBWA/Chiat/Day, PepsiCo "may be looking for an agency with more of a track record reaching a younger demographic" (WALL STREET JOURNAL, 4/17).
WINDY CITY BLUES: In Chicago, Lewis Lazare reports with Gatorade leaving Element 79, the "bloodletting could reach as high as 80 staffers" at the agency. There likely will be "significant downsizing at the agency in the next couple of months," though sources indicated that it is "too early to say how many staff would be cut." The loss of the Gatorade account is a "major setback not only for Element 79, but also for Chicago," where Gatorade has its HQs (CHICAGO SUN-TIMES, 4/17). Also in Chicago, Mike Hughlett reports Gatorade's departure from Element 79 "comes at an important time" for the brand, which "has embarked on two big marketing campaigns'' for the launch of G2, a reduced-calorie sports drink, and Gatorade Tiger, a partnership with Woods. Element 79 President & CEO Brian Williams declined to comment (CHICAGO TRIBUNE, 4/17).
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