PepsiCo reviews media buying and planning requirements

Arvind Hickman
By Arvind Hickman | 8 June 2017
The media agency that wins Pepsi's business will not have to worry about placing the contentious Kendall Jenner ad.

PepsiCo has begun a closed media review in Australia placing incumbent PHD on notice, AdNews can reveal.

It is believed the regionally-led review is not an attempt to consolidate the business within one media holding group and each country will have a say in who wins the business locally.

The global soft drink and snack food giant is reviewing media across all of its business divisions – Pepsi beverages (Pepsi, Pepsi Max, Pepsi Next, Mountain Dew, 7Up and Gatorade); Smith’s Snackfoods (Smith’s, Doritos, Twisties, Red Rock Deli, Nobby’s Nuts and Grain Waves) and the Quaker oats range.

The combined annual media spend across the group is around $25 million.

PHD has held the account since 2010, when it picked it up from EightyK’s following a global alignment with Omnicom media agencies. That pitch went down to a shoot-out between PHD and Mindshare.

AdNews understands the client is pleased with its relationship with PHD in this market.

Recently, PepsiCo's president of beverages Brad Jakeman complained about the lack of diversity at agencies and has also taken steps to ensure its agency reviews are not driven by procurement and cost-cutting.

Last year, PepsiCo appointed Red Agency SSC as its digital agency across PepsiCo's beverages division. Soap was appointed digital agency for Smith's Snackfoods brands.

PepsiCo appointed Tami Cunningham as marketing director for Australia and New Zealand after Jenni Dill left to become CMO of McDonald's. AdNews understands Cunningham has since left the business and PepsiCo is seeking her replacement.

PepsiCo recently attracted plenty of negative press over a cringeworthy Kendall Jenner ad that it quickly pulled.

All agencies AdNews approach declined to comment.

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