Pepsi ends 48-year relationship with BBDO

BBDO defended the account but has lost it to its Omnicom sister agency TBWA\Chiat\Day after a final two-way shoot-out. The network will continue to handle creative duties on the brand outside of the US.

The move is a blow to BBDO in the US, which has handled the Pepsi brand in the US since 1960. During this time it created some of the most iconic campaigns seen in the ad industry.

BBDO created the Pepsi Challenge blind taste test in a direct challenge to long-standing rival Coca-Cola, and in 1963 launched the Pepsi Generation campaign which positioned Coca-Cola as the older, stale brand and paved the way for the catchy 1980s slogan "Pepsi. The Choice of a New Generation".

BBDO also used a large number of celebrities to promote the brand over the years, including Cindy Crawford, Ray Charles, Britney Spears, Michael J. Fox, and Michael Jackson.

The move is part of an attempt by Pepsi to revitalise its soda business as US sales continue to slide.

Weak beverage sales were a major factor behind a disappointing third-quarter profit report from PepsiCo.

The company will be hoping TBWA can inject Pepsi with new life, in much the same way it did with one of its other accounts, Apple.

In recent years, TBWA has created the successful Mac v PC and the iPod dancers campaigns for Apple.

Tom Carroll, the chief executive of TBWA Worldwide, said: "We are thrilled to have the opportunity to work on one of the great brands in the world.

"It is impossible not to feel passionately about the direction the brand is evolving to."

Dave Burwick, chief marketing officer for PepsiCo North America Beverages, said: "We decided to appoint TBWA\Chiat\Day to refresh Pepsi's communications across multiple consumer touch points and to reinvigorate Pepsi's legacy of leading-edge advertising.

"This is fully complementary with our ongoing relationship with Arnell who has created the new Pepsi identity and packaging and is responsible for the ongoing design and brand identity development."

Media duties on the brands are unaffected by the move and remain at Omnicom's OMD in New York.

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