Coke account to move to Lowe Lintas & Partners

30 Jan 2001 05:30 IST

New Update

Following global realignment, the advertising for the Coca-Cola brand in India is set to move from the Rs 197-crore Leo Burnett India to Lowe Lintas & Partners

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In the wake of global realignment, the advertising for the Coca-Cola brand in India is set to move from the Rs 197-crore Leo Burnett India to Lowe Lintas & Partners. According to a source close to agencyfaqs!, the Coke account, estimated to be worth Rs 30 crore, will switch hands in April 2001.

A top-ranking official of Coca-Cola India told agencyfaqs! that Leo Burnett has been informed about the development today, while Lowe Lintas was told yesterday itself. However, both the agencies are awaiting the official announcement from Atlanta (Coca-Cola's headquarters), which is expected later this evening.

According to a senior executive at Leo Burnett, the agency was aware of the threat since mid-December 2000. "The Interpublic Group of Companies had pitched for and won the account (with effect from December 01, 2000), but in India, the company was waging a valiant battle for us," he says. "However, Atlanta put its foot down, and the local management was forced to comply."

In India, the Interpublic Group is represented by five agencies - McCann-Erickson, Lowe Lintas & Partners, Enterprise Nexus, SSC&B and Quadrant Communications. Coke officials say, "In India, the choice was really between McCann and Lowe Lintas, and the company has opted to go with Lowe Lintas." Apparently, worldwide, McCann-Erickson is likely to benefit the most from this realignment, as it would be in charge of the account in most markets.

When contacted, Coke officials were quick to point out that "we are extremely happy with the work done by Leo Burnett" and that "it is only because of the global realignment that the brand was pulled out of the agency". They insist that, "It was only the Coke brand that was up for review, and that too globally."

"We were on a good wicket as for the first time starting December 2000, Coke had inched ahead of Pepsi on different advertising parameters," says the rueful Leo Burnett executive. However, he points to the fact that the Thums Up and Maaza accounts are still very much with Leo Burnett. "And just last week, we have won another Coke business, a new beverage brand which is being launched in May 2001," he adds.

Incidentally, both Lowe Lintas and Coca-Cola India refused to go on record to confirm the movement. While Coke executives officially held that the news could be made public only on Thursday (February 01, 2001), Lintas kept volleying our calls between its Mumbai and Delhi offices.

Tomorrow morning will hopefully clear the mist.