The Battle for Coke Wages on Into 1994: Ex-McCann creative Paul Cappelli Joins The Fight With One of CAA's Production Houses By Michael McCarth

NEW YORK - In one of the bigger ironies in the soap opera of Coca-Col

Sources said Cappelli has been pursued by one of the production houses working for CAA and has agreed to work with them on a project basis. At press time, Cappelli could not be reached for comment.
With both McCann and CAA deep into round two of the fight to control Coke Classic advertising in 1994, sources said the talent agency has already presented and won approval for some 1994 work. CAA appears to be using the same strategy as round one – far from tapping into any unique Hollywood resources, CAA is turning to the production houses for creative ideas and production. Some of these houses, in turn, are beating the bushes for creatives from Madison Avenue to help produce the work for CAA.
Meanwhile, McCann is working furiously to prepare for its own Coke presentation. Sources said McCann creative Ken Domanski, one of the two creative heads under Coke creative chief Bruce Nelson, will be moving off the account to work on other business.
On another front, sources said Nelson and other IPG creatives have been helping sister shop Lintas:N.Y. on Diet Coke. Speculation continues that CAA also will work on Diet Coke, but CAA insists it has had no discussions with Coca-Cola about that brand, and the company denies CAA is being brought in on that business.
While nobody will comment publicly, some financial details are starting to come to light about CAA’s deal with Coke. While Coke marketing chief Peter Sealey has publicly stated that Coke’s 26 spots last year (24 of which were produced by CAA) cost less than a half-dozen McCann ads. Sources close to Coke estimate the client paid over $30 million to CAA for production costs.
Additionally, CAA chief Michael Ovitz was reportedly paid a fee of $1.5 million for his personal services as well. During the previous year, Coke reportedly operated with a production budget of $13-14 million.
Copyright Adweek L.P. (1993)