Dive Brief:
- PepsiCo is shifting its global media duties to Publicis Groupe, the food and beverage giant confirmed in an email to Marketing Dive. Omnicom previously handled the account.
- The agency network plans to withdraw from a pitch for The Coca-Cola Company’s global media business as part of the move, Adweek reported, citing sources with direct knowledge of the matter. Publicis won Coke’s North American media and data duties from WPP last year.
- The media shake up comes as PepsiCo tweaks its portfolio, including through acquisitions of disruptors like Poppi and Siete, and sees stronger international consumer demand. Publicis has been on a steady winning streak and has cited its sophistication in artificial intelligence and data-driven marketing as a draw for new business.
Dive Insight:
PepsiCo’s appointment of Publicis comes as the CPG marketer transforms its media model for “the next era of marketing,” including by integrating “media strategy, planning, activation, data, connected identity and technology across markets,” the company said over email. In supporting those goals, Publicis is standing up a One PepsiCo global media operating model that will help PepsiCo with improved decision-making across earned, paid and owned channels while driving greater consumer impact and productivity.
Publicis scoring PepsiCo’s global media account marks a major win for the company, which has consistently outperformed agency peers thanks to a steady stream of new business. The news could also be read as something of a surprise given that the network is in the running for Coke’s global media behemoth, a race where it will now likely withdraw, reports indicate. Publicis last year delivered a blow to WPP by snagging Coke’s media and data business in North America following a closed-door review. Publicis did not immediately respond to a request for comment on the PepsiCo win.
Losing PepsiCo’s global media could rattle Omnicom, which has handled aspects of the business for decades and is navigating a complex integration after acquiring rival Interpublic Group last fall. Omnicom could not immediately be reached for comment on the account loss.
PepsiCo is contending with inflation-strapped consumers in North America, but international demand has been more robust. The Pepsi and Frito-Lay owner saw net revenue rise 6.4% year over year to $24.2 billion in Q2, above consensus estimates. Discussing the earnings earlier this summer, executives said marketing and advertising costs in North America would rise in the second half of 2026 as the CPG company plays “offense” in a difficult environment.
Like many legacy packaged food and beverage marketers, PepsiCo is contending with the rise of better-for-you alternatives to its established brands — hence its acquisition of prebiotic soda upstart Poppi for nearly $2 billion last year — and changing consumer habits, including different dietary needs for users of weight loss drugs.
Beyond category-specific challenges, PepsiCo is also operating in a marketing environment where more focus is shifting to social-first and creator-led strategies, as well as capabilities powered by AI. PepsiCo is in the midst of a separate review of its marketing services centered on AI transformation, Ad Age previously reported.
Publicis has attributed its steady clip of new business to its integrated agency model and superior capabilities in AI and data. Net revenue at Publicis increased 4.8% on an organic basis in Q2, with growth in all regions save the Middle East and Africa. Other recent wins include global media for Microsoft, which is also deepening an existing partnership with the network to support agentic AI development.
