OMD Mulls Pepsi Media Operation

LOS ANGELES—Omnicom media network OMD and client PepsiCo are discussing how best to integrate an estimated $150-200 million in additional media billings following the client’s consolidation of its advertising at Omnicom, sources said. OMD and BBDO handle the $400 million flagship Pepsi soft drink account; last month the client reassigned brands formerly handled by Foote, Cone & Belding, now a part of IPG, to Omnicom. Gatorade, Tropicana and Quaker are among those brands. Buying “will be consolidated within OMD,” a source said, but denied that a decision has been reached about creating a new PepsiCo-dedicated media entity within OMD. OMD and the client are expected to meet within the next week or two to hammer out the details.

McDonald’s May Alter Campaign

CHICAGO—McDonald’s, set to outline a significant organizational change this week, may also be ready to revamp its advertising. Sources said the “We love to see you smile” campaign is set for an overhaul and that the new tag may simply be “Smile.” The Oak Brook, Ill.-based fast food chain last week reduced its five U.S. divisions to three. Lead agency for the brand remains DDB in Chicago.

DraftWorldwide Merges With Sister Shop Lowe Live

CHICAGO—DraftWorldwide is absorbing fellow Interpublic Group of Cos. unit Lowe Live, a customer relationship management business under Lowe Lintas. Lowe Live offices in San Francisco and New York will take the Draft name and report to Draft’s New York headquarters.

McCann-Erickson Cuts Staff

NEW YORK—McCann-Erickson here has laid off about a dozen staffers across all disciplines, sources said. About 1,110 people are on staff in the $2 billion New York agency. A shop representative declined comment.

Tutssel Tapped for New Leo Burnett Creative Post

CHICAGO—Mark Tutssel, an executive creative director in Leo Burnett’s London office, is set to be named deputy chief creative officer of Leo Burnett USA, a new position, sources said. He will report to chief creative officer Cheryl Berman and hold a post between her and the shop’s 11 ecds, sources said. An agency representative declined to comment. Burnett had considered former Kirshenbaum Bond & Partners creative chief Bill Oberlander for the job before he took the ecd post at Ogilvy & Mather.

Account Activity

Questionnaires for the $145-155 million ONDCP account review are expected to be available this week, a client representative said. … DDB has withdrawn from the $12-15 million French’s review, due to a potential conflict, sources said. Still in are Deutsch and Messner Vetere Berger McNamee Schmetterer/Euro RSCG, both in New York. New York shop Jordan McGrath Case & Partners will take DDB’s spot, sources said. New York consultancy Roth Associates is handling the search. … About 20 shops received rfps, due back last Friday, for the $25-30 million Starwood Hotels account. … 24 Hour Fitness has launched a review for its $25 million creative account and incumbent Grey will defend, according to sources.