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Ogilvy wins $300m global Coke Zero account…

…Something that has come as a bit of a shock to VCCP, which handles the £35m business in Europe, McCann Erickson – responsible for South-Asia, and Crispin Porter + Bogusky – the same, in the USA – who didn’t even know they were in a competition.

Why has Coca-Cola been so reluctant to disclose the fact that there has been a pitch at all, let alone that Ogilvy & Mather has won it? It’s a mystery. Although on the existing roster, Ogilvy has thus far been in charge of Latin America only. It’s not the most promising piece of Zero terrain (Latin Americans’ aversion to the ‘toxic’ aspartame infusing the brew is well known). Then again, maybe Ogilvy just had to fight that much harder to come up with a winning idea.

Two years ago, Coke instituted, at considerable expense, a European review which ended with VCCP triumphing over Wieden & Kennedy and Argentinian agency Santo. It was part of a global consolidation of agencies aimed at delivering stringent “marketing efficiencies”. At the time, coke CEO Muhtar Kent noted: “Agency numbers have gone down by more than half, and I think we have driven a lot of efficiencies in our market research costs, in our marketing over the past 12 months.”

Evidently not quite enough of them, judging from Coke’s recent conduct. The current “secret” review appears to be aimed at developing a single, global, advertising concept. I have not idea at this stage what that might be. Apply to Ogilvy Paris, which will be handling the global campaign.

Huge thought the win is, Ogilvy should remember that today’s favourite may be tomorrow’s casualty. In its agency relationships, Coke is beginning to resemble a gangster playing Russian roulette. Who will be the last agency standing?

There’s more on the nature of the win, and the turbid roster politics of Coke Zero, in an article by Joe Fernandez on Pitch.

UPDATE 16/12/10: Coke, under pressure, is now claiming “This [the Ogilvy] appointment does not affect local market agency relationships on Coke Zero.” Not much it doesn’t. Most of the money will now be flowing to Ogilvy. Still, you’ve got to keep the rest of the troops happy.

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