The Coca-Cola company has selected incumbent WPP and Publicis Groupe as finalists in a closed door review of its U.S. media business, a source with knowledge of the situation confirmed to ADWEEK.
WPP has held the account since 2021, when it won The Coca-Cola Company’s global business and launched a bespoke team called Open X to service the roughly $4 billion account. Publicis was the runner up in that review.
The win gave Open X the beverage giant’s portfolio in more than 200 countries and territories across its media, creative, and production agencies.
Dentsu was also brought on board at the time as a “complementary” media partner to offer “differentiated capabilities” at a local level within a few select markets in Asia. The Coca-Cola Company also set up an “open-source strategic roster” that at the time it said would account for one-third of all marketing work and includes Publicis and IPG agencies.
WPP and Publicis declined comment on the ongoing review.
The source with knowledge of the review said the majority of WPP’s business with The Coca-Cola Company sits within creative and production. COMvergence pegs Coca-Cola’s 2024 U.S. media spend at $785 million, up from $610 million in 2023.
Still, the loss comes at a critical time for WPP, which missed analyst expectations in its latest earnings report at the end of Feb., when it forecasted a revenue decline of up to 2% for 2025. At the time, CEO Mark Read told ADWEEK he was betting on a turnaround at media network GroupM to boost the holding company’s fortunes.
According to its Form 10-K filing with the Securities and Exchange Commission, The Coca-Cola Company spent $5.15 billion on advertising globally in 2024, up from $5 billion in 2023 and $4.32 billion in 2022.
Coca-Cola reported net revenue of $47.1 billion in 2024, up 3% from the previous year, and it expects organic revenue growth of 5% to 6% in 2025.
During a February earnings call with analysts, Coca-Cola’s CEO James Quincey said the company has seen “tangible results” from its marketing efforts, with retail sales of the Coca-Cola brand increasing $40 billion over the past three years. He noted the company plans to pour more money into the business moving forward. “We are going to invest from the marketing all the way down,” he said.
Source:ADWEEK