Freuds has worked with Pepsi itself for 25 years on a number of global campaigns. It also currently holds a UK corporate comms brief with parent company PepsiCo, as well as working with a number of other PepsiCo brands in the UK.
Freuds said it had decided not to re-pitch for the PepsiCo UK corporate brief, which is currently subject to a procurement-led consolidation of PepsiCo marketing across Europe, which is bringing together its western and eastern European marketing operations.
PRWeek understand that the PepsiCo brief is worth less than £100,000 annually. Freuds said its global work with Pepsi itself would not be affected.
A spokeswoman for Freuds said that new cost limits imposed by PepsiCo's procurement rules would stifle its ability to create big impactful ideas.
She said: "Our view is that the comms model they are now adopting to cut costs across Europe is rather limiting for the kind of work we are used to doing for them. We will continue working with them next year in other parts of their business."
Pepsi has been a major client for Freuds throughout its 30-year history, as founder Matthew Freud discussed in an exclusive interview with PRWeek last month. In 1996, Freuds helped Pepsi with a rebrand that saw the previously red-branded product go blue – the launch involved painting Concorde blue (pictured above) and the Daily Mirror's masthead turning blue, costing £6m.
- This story was changed shortly after publication. It had originally said that Freuds had ended its work with Pepsi itself.