3 Still Standing for Kalœha Business
DALLAS–Allied Domecq, Southfield, Mich., selected three shops for final presentations later this month in the $12 million review for its Kahlœa brand liqueur. Making the cut from an initial list of seven were incumbent Lois/EJL and BBDO, both Chicago, and Square One, Dallas, according to AD vice president and director of communications Ross Fleckenstein. A decision is expected in September.
FDA Likely to Appeal on Drug Ad Restrictions
¸WASHINGTON, D.C.–The Food and Drug Administration is expected to appeal a federal court decision banning its restrictions on the promotion of off-label uses of drugs in materials distributed to doctors and hospitals. “The decision as written could ultimately limit the FDA’s ability to restrict the content of prescription drug ads on TV and in print,” said John Kamp of the American Association of Advertising Agencies.
Y&R Lands Global Schweppes Account
NEW YORK–Cadbury Schweppes has selected Young & Rubicam to handle global duties on its Schweppes beverages and mixers after a review that included Saatchi & Saatchi and Foote, Cone & Belding. Billings were estimated at $30-40 million.
McCann Gets GM Nod
DETROIT–General Motors selected McCann-Erickson Worldwide in Troy, Mich., to create the automaker’s first national post-strike TV spot. It will be an extension of the “Lots of cars, lots of trucks, lots of deals” ad the agency created for GM during the strike, sources said. The client tested three concepts from McCann, national agency for Buick, and one from Campbell-Ewald Advertising, Warren, Mich, national agency for the Chevrolet division.
Y&R, True North Report Gains
NEW YORK–Young & Rubicam reported revenues of $720.3 million for the first half of 1998–a 15.6 percent increase from 1997. But due to non-cash charges at the time of its May 12 public offering, Y&R operated at a net loss of $137,634 over the same period. Separately, True North Communications reported net income for its second quarter, ending June 30, of $17.7 million, up 20.8 percent from a year ago. For the first six months of 1998, net income was up 56.5 percent to $21.4 million. TN attributed the sharp increases to operating synergies achieved following the merger with Bozell, Jacobs, Kenyon & Eckhard and to new business wins throughout its network.
DreamWorks Delays Decision
DALLAS–The $85 million media review for DreamWorks SKG, Universal City, Calif., has resulted in assignments for two contenders and the company delaying its selection of a single agency until later this year. DreamWorks representative Amy Gruberg said incumbent Focus Media, Santa Monica, Calif., will handle media for Antz and GSD&M, Austin, Texas, will take on the same duties for Prince of Egypt. Both films are scheduled for a fourth-quarter release.
Promus Decision Expected This Week
DALLAS–The field of shops pitching the $40 million account of Promus Hotel Corp. was narrowed again last week when Hill, Holliday, Connors, Cosmopulos in Boston withdrew. Still in contention are DDB Needham in Dallas; Arnold Communications, Boston; TBWA Chiat/Day, New York; and Foote, Cone & Belding, Chicago. Sources believe Promus marketing officials will award the account as early as this week, despite last week’s news that Promus chairman and CEO Raymond Schultz and president and chief operating officer Richard Kelleher were leaving.
American Stores has put the review for its estimated $50 million business on hold due to Boise, Idaho-based Albertson’s plans to acquire the company D’Arcy Masius Benton & Bowles has landed the advertising business of Ernst & Young. The accountancy says it will spend about $30-35 million on ads. DMB&B edged out finalist DDB Needham, New York [Adweek, Aug. 3] Neil French, Asia/Pacific regional creative director at Ogilvy & Mather Worldwide, has been appointed the agency’s worldwide creative director. French, based in Singapore, is the first person to serve in that capacity at Ogilvy since the 1980s Grey Advertising in New York reported a second quarter gross billings increase of 13 percent, from 1997 to 1998, going from $1.4 billion to $1.5 billion. Income from commissions and fees also increased by 13 percent to $233 million The Foot Locker division of Venator Group has given lead agency Deutsch in New York all duties on two more accounts: Lady Foot Locker and Kids Foot Locker. Total billings were estimated at $35-45 million Deutsch plans to move its New York office from Park Avenue South to 8th Avenue at 16th Street by year-end Harley-Davidson Motor Co. breaks new ads this month by Carmichael Lynch, Minneapolis, for its lower-price Sportster model. Print work will run nationally in Rolling Stone, Men’s Journal and Playboy D’Arcy Masius Benton & Bowles in Troy, Mich., named Will Perry a senior vice president and group creative director for “Group D’arcy,” the unit that handles accounts other than General Motors. Perry had been DMB&B’s regional creative director for Eastern and Central Europe and creative director on Coca-Cola Europe Carat Freeman won the estimated $30 million media buying assignment for NEC Computer Systems and said it will open its first office outside Massachusetts on Sept. 1.