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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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Honest Tea says Coca-Cola can help boost its expansion, message

BY Jenna Duncan

BETHESDA, Md. Honest Tea announced that it is following the leadership of Coca-Cola to boost business, and its social mission of promoting conservation and eco-friendly consumerism. Honest Tea has been known for operating out of a “green” building and for promoting an agenda of natural health and environmental responsibility.

Coca-Cola last month announced that it has acquired 40 percent of the small, eco-friendly beverage company and invested $43 million into its operations. Spokespersons said that Honest Tea stands to benefit from Coca Cola’s distribution and manufacturing knowledge.

Some skeptics warned that great changes may loom ahead for the Honest Tea company. Experts have said that smaller companies often find that they must change their mission statements and risk losing their identity during mergers.

Seth Goldman, Honest Tea co-founder and chief executive officer, said he understands concerns about corporate partnering with an industry giant like Coca-Cola.

“I’ve gotten the e-mails. And I know there is risk attached here,” he said. He added that he believes Honest Tea can use the expanded distribution and sales volume opportunities from partnering with Coca-Cola to launch awareness about health and promote sustainable agriculture.

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