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Pepsi switches marketing gears for Gatorade, Tropicana

BY Jenna Duncan

CHICAGO Marketing efforts for two of PepsiCo’s major brands, Gatorade and Tropicana, will fall into new hands, the company said yesterday. The Arnell Group of New York will now handle Tropicana and TBWA\Chiat\Day of Playa del Rey, Calif., will take on Gatorade, moving marketing out of the hands of Element 79, the company said. Both of the new groups, as well as Element 79, are controlled by Chicago-based Omnicom Group.

“We’re always looking for breakthrough creative, and … are continuously assessing performance from incumbents, as well as other agencies,” the company said in a statement released yesterday.

PepsiCo reportedly spent more than $180 million on its U.S. media campaign for Gatorade last year and almost $30 million on Tropicana, according to a report by Nielsen Monitor-Plus.

Element 79, which was created in 2001 to handle Quaker/PepsiCo after the company left Foote, Cone & Belding, also lost three other PepsiCo brands earlier this year: Lays, Propel Fitness Water and Tostitos. But they continue to handle Quaker cereal, rice and snack brands, covering such brands as Cracker Jack, Life cereal, Quaker brand oatmeal and other products.

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Milwaukee Brewers name Quench their official gum

BY Jenna Duncan

PRAIRIE DU SAC, Wis. Quench gum, marketed for its “thirst-quenching” flavors, will get an extra boost from American League baseball team the Milwaukee Brewers; the team has named Quench its official gum.

Mark Lutz, national sales manager for Quench, said, “We are thrilled to team up with the Brewers. Brewer fans are extremely loyal and their games are a big draw. It’s the perfect opportunity to support the home team and spread the word about Quench gum to a wide variety of people.”

Quench will be allowed exclusive marketing rights during the Brewers’ 2008 season at Miller Park and has planned several events for the summer, including giveaways like Quench Gum Night, July 25.

Mueller Sports Medicine is the maker of Quench gum, purported to help alleviate thirst because it has a tart flavor that stimulates saliva. In addition to its alleged prevalence among baseball players, Quench is also reportedly used by professional athletes in basketball, football, hockey, and even marathon runners.

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Coca-Cola profit leaps 19 percent in first quarter

BY Jenna Duncan

ATLANTA The Coca-Cola Co. said that profits rose 19 percent on a 21 percent increase in sales in the first quarter of its fiscal year, beating Wall Street predictions.

Revenues leapt to $7.38 billion from $6.10 billion at the same time last year, the company said. Net profit totaled $1.5 billion for the quarter, compared with $1.26 billion in the first quarter of 2007. Per share, first-quarter profits came in at 64 cents, compared with 54 cents per share a year earlier.

Coca-Cola also reported that case volume saw an increase of 6 percent during the first quarter worldwide.

Coca-Cola holds its annual meeting in Wilmington, Del., today.

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