Pepsi eyes PR agency reduction as second executive departs

PURCHASE, NY: PepsiCo will put some of its food and beverage brands up for review with the aim of decreasing its roster of PR agencies.

PURCHASE, NY: PepsiCo will put some of its food and beverage brands up for review with the aim of decreasing its roster of PR agencies.

The company will cut some of its agencies to free up resources to put back into marketing and communications for marquee global food and beverage brands, such as Gatorade, Quaker, and Pepsi, said Peter Land, SVP of communications at PepsiCo.

“It would be fair to say that we will have fewer relationships, but the relationships that we do have should be larger,” he explained.

The news follows on the heels of the departure of the top communications executive at PepsiCo, Julie Hamp, SVP of consumer relations and CCO, who recently said she will resign. Additionally, Bonin Bough, PepsiCo's senior global director of digital and social media, left the company this month and took a position at Kraft Foods as VP of global digital and consumer engagement.

PepsiCo hasn't “made all the decisions yet” in terms of which brands will undergo reviews, but the process is expected to start “over the course of the next few weeks,” said Land. He added that some of the existing relationships with agencies will be expanded.

Pepsi's PR agencies include Edelman, Ketchum, Fleishman-Hillard, Weber Shandwick, and Ruder Finn.

“Our agencies are incredibly important partners and they have incredible value,” Land said. "But we want to drive as much value as possible with the consumer. The idea is to create as much consumer-facing activity as possible because that's the most productive use of our budget.”

Despite the changes underfoot, Land disputed the idea that PepsiCo is undergoing any kind of restructuring.

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