Coca-Cola’s Media Pivot: Lessons For CMOs From Pepsi’s Power Play

TL;DR

PepsiCo's sudden move to Publicis and Coca-Cola's resulting review reset show how quickly holding company consolidations and conflict rules can upend global brand rosters.

As these mega-account transitions soak up senior agency bandwidth across adland, advertisers face shrinking leverage and potential talent strain on their accounts.

To protect competitive advantage in a volatile market, marketing and procurement leaders must scenario-plan against agency conflicts, audit existing contracts, and actively govern their strategy for media in 2027. 

Senior marketers everywhere are looking at Coca-Cola and PepsiCo and asking the same question: How did the most coveted clients in the world end up in this much media change so quickly? 

In this #MediaSnack episode, we unpack what is going on, what it tells us about agency consolidation and Media Palooza, and how smart advertisers should respond.

This blog breaks down the story for CMOs, Procurement Directors and Global Heads of Media. You will see why the Coke and Pepsi moves matter far beyond soft drinks, how they affect your leverage with holding companies, and the practical steps you can take this quarter to protect your competitive advantage in media.

The ID Comms Breakdown

The Coca-Cola media review shows how quickly a flagship client can lose leverage when agency consolidation, conflicts and surprise deals collide. In a few weeks, Coke went from global prize account to scrambling for partners, giving every CMO a live case study in risk, timing and negotiation.

What's going on?

This is a situation that even after decades in global media, we call truly bonkers.

For years, Coca-Cola and PepsiCo sat in relatively stable agency relationships. Then, in rapid succession, three things happened that rewrote the script.

First, Coca-Cola consolidated most of its global media with WPP in 2021, a huge endorsement of WPP’s Open X model. Publicis later picked up North America, creating a split: WPP for most markets, Publicis for the US and Canada, Dentsu for Japan and parts of Asia.

Then PepsiCo made a bold move. It walked away from a two decade relationship with Omnicom and gave its global media, data and tech mandate to Publicis, reportedly without a traditional pitch.

Publicis is now building a 'One PepsiCo model underpinned by AI and data, uniting strategy, planning, activation and tech across more than 200 markets. PepsiCo’s 2025 marketing outlay was about 5.4 billion dollars, with roughly 3.4 billion in advertising, so this is not a side project.

That deal instantly created an unmanageable conflict with Coca-Cola. Publicis began stepping back from Coke’s international review and then from its North American media, reportedly worth around 700 million dollars in spend. Within weeks, Coca-Cola went from orchestrating a multi year global review to facing a doomsday scenario in which its two main incumbent groups, Publicis and WPP, both removed themselves from the North America contest.

At the same time, Dentsu and Omnicom were pulled into the frame in ways that would have been unthinkable a month earlier. Omnicom, freshly displaced by Pepsi, suddenly finds itself free to talk to Coca-Cola. Dentsu, once a major Coke partner and still handling Japan, is now back on the shortlist as a potential wildcard.

What are the implications?

The immediate implication is reputational. Coke is used to being the category leader, the brand every agency wants on its credentials deck. Yet in this story, it is being outflanked by its arch rival. Pepsi acted decisively, secured Publicis on its own terms and left Coca-Cola with fewer options and less leverage.

For CMOs, the episode exposes a structural problem with agency consolidation. For years, large advertisers pushed holding companies to build global, integrated models. Those same consolidations now make conflicts harder to manage and reduce the number of viable partners. When two mega brands like Coke and Pepsi require strict separation, one bold move can empty half the chairs around the table.

We also point out capacity constraints. Media Palooza was already building, with 18 months of global reviews and renegotiations coming. Now, one of the highest profile pitches in the world is spilling over into 2027 and consuming leadership time across multiple holding companies. Every major Publicis team will be focused on bedding in PepsiCo. WPP and Omnicom leaders are firefighting optics and client anxiety. That leaves less senior bandwidth for your pitch or renegotiation.

There is a second order effect on the so called Red Ocean agencies as well. As Publicis, WPP and Omnicom wrestle with mega accounts and restructuring, advertisers will naturally look harder at Dentsu, Horizon, Havas, Stagwell and strong independents. This could be a real opening for smart mid sized groups to pick up global or regional mandates from marketers who no longer want to be tied to the biggest three.

How should marketers be thinking?

Tom Denford and David Indo use this episode to coach advertisers on how to think, not just react. Their first point is simple: do not assume agencies are lining up to pitch for you. At this level, agencies are choosing clients as much as clients choose agencies. The Coke and Pepsi story is the clearest proof yet.

If you are a Publicis client, your priority is to protect your access to talent, innovation and the Marcel powered growth system that has been sold to you over the last few years. You should be asking Publicis leadership how the PepsiCo onboarding will impact your team, your service levels and your roadmap, and getting specific commitments in writing.

If you are an Omnicom client, this is a moment to quietly strengthen your position. You know Omnicom does not want another headline loss. If your contract is coming up, or if your scope or staffing needs have evolved, this is a good time to recalibrate commercial and resource terms without necessarily triggering a formal pitch. A well structured reset now could be worth several percentage points in improved value over the next three years.

If you are with WPP, you want clear reassurance that your account will not be distracted by the fallout of the Coca-Cola story. That means visibility on senior attention, talent stability and the evolution of the operating model around your business, not around a single mega pitch.

Most importantly, every CMO and procurement lead should be scenario planning. Ask yourself: if my number one agency choice suddenly became conflicted tomorrow, what would I do. Who is my true plan B. Am I over reliant on a single holding company. Could I get better balance by mixing a global network with best in class specialists or independents in key markets.

ID Comms spends every week helping advertisers write smarter briefs, design more resilient pitch strategies and, in many cases, negotiate better deals without pitching at all. The lesson from this #MediaSnack episode is clear: your media gameplan must be built for volatility, not just for business as usual.

Before the market gets even busier, get in touch with ID Comms to confidentially discuss your gameplan and your options to protect your competitive advantage in media.

Frequently Asked Questions

1. Why is the Coca-Cola media review such a big deal for the industry?

Because Coca-Cola is one of the most visible, marketing led companies in the world. When its global media review unravels in public, it exposes how fragile even the most carefully planned consolidation strategies can be, and every large advertiser looks at their own setup with fresh concern.

2. How similar are Coca-Cola and PepsiCo in media spend terms?

Despite some headlines claiming huge gaps, data from sources such as Convergence suggests they are broadly comparable mega advertisers. Recent figures put Coca-Cola around 2.6 billion dollars globally and PepsiCo around 1.9 billion, with both spending roughly three quarters of a billion dollars in the US alone.

3. What does the PepsiCo and Publicis deal change for other advertisers?

It signals that bold, AI and data driven models can be built without a long, traditional pitch, and that holding companies will walk away from conflicting accounts when the prize is big enough. For other advertisers, it means capacity at Publicis will be tightly focused on PepsiCo in the near term, which could affect how and when you choose to review.

4. Why did Publicis step away from Coca-Cola?

Publicly, the story is about conflict. You cannot sensibly run both PepsiCo and Coca-Cola through the same global media model. Behind that, there are strategic choices: Publicis clearly believes PepsiCo’s brief, scope and growth ambition make it the better long term fit, even at the cost of resigning a high profile Coke mandate.

5. Does this mean WPP or Omnicom are in serious trouble?

It is certainly uncomfortable optics when you lose or step away from iconic brands. But we stress that the big holding companies still have huge scale and strong capabilities. The real story is about how they recalibrate their portfolios, rebuild confidence with current clients and prove that their models can flex to new realities.

6. What is Media Palooza and how does this case affect it?

Media Palooza is the expected surge of global media reviews and account changes over the next 18 months. The Coca-Cola and PepsiCo moves will push at least one major review into 2027 and soak up leadership capacity at several holding companies, making the already crowded pitch calendar even more intense for everyone.

7. Should I delay my own media pitch because of this chaos?

Not automatically. You should map your timing against when your preferred partners will have realistic capacity and senior focus. In some cases, that means moving faster to get ahead of the crush. In others, it might mean using 6 to 12 months to renegotiate, fix governance and sharpen your brief before going to market.

8. How can I protect my leverage with agencies right now?

Start by knowing your value: your current and projected media investment, your growth story and your reputation as a partner. Then use that to secure clarity on senior sponsorship, key talent, commercial terms and innovation access. Quiet, well prepared conversations with existing partners can often unlock more value than a rushed pitch.

9. What role should procurement play in this environment?

Marketing procurement should act as a strategic co pilot, not just a cost chaser. That means helping CMOs model different agency scenarios, stress test contracts, and ensure that the commercial framework supports flexibility, data access and talent quality, not just the lowest fees on a rate card.

10. How can ID Comms help my organization specifically?

ID Comms works with global advertisers to diagnose where media value is being left on the table, design smarter governance and pitch strategies, and coach internal teams through complex decisions. Whether you are planning a major review or simply feel unsettled by this story, we can help you protect and grow your competitive advantage in media.

Episode Transcript

Tom Denford: Welcome back to #MediaSnack. Publicis has stepped aside from parts of the Coca-Cola business to take on its massive PepsiCo win. Coca-Cola is having to reopen its roughly 700 million dollar North American media account to a list of agencies that seems to be changing by the hour.

This is live, breaking news. In this episode, we unpack Coca-Cola’s five year timeline of pitches and ask what it looks like when a global leader gets outmaneuvered by a rival. Can Dentsu pull off a match winning upset and change its destiny. And what happens now that WPP has just pulled out of the latest North America review.

Live from New York and live from London, it is MediaSnack Live. Hello, I am Tom Denford in New York.

David Indo: And I am David Indo from London. Welcome to MediaSnack Live, our weekly roundup of the most important news, stories and trends in the global media and marketing industry.

In every show we ask three questions: what is going on, what are the implications for advertisers, and how should marketers be thinking about what comes next. There is a lot to cover in this one.

Tom Denford: We have had more questions in the last week than at any time recently about what on earth is going on in ad land and agency land. People are asking how they are supposed to think about these changes.

If you watch #MediaSnack regularly, you know this is a live stream every Friday where David and I use our decades of experience in global media, marketing and advertising to help advertisers make better decisions. That is also the core of our consulting business at ID Comms: helping advertisers navigate disruption and complexity in media.

We have been talking about Media Palooza, our term for the rush of media pitches and account changes we expect over the next 18 months. The last week has proved the point. It has all ramped up, not least with the Pepsi and Coca-Cola news and the way agencies are moving, sometimes with pitches and sometimes through direct negotiation.

If you are an advertiser trying to figure out what to do, this is the show for you.

David Indo: Let us get into Coca-Cola’s big pivot. You could not really script what is going on right now. Just when Media Palooza looked like it was tracking along in a fairly conventional way, we hit September, the balloon is popped and it becomes a free for all.

Coca-Cola put its global media up for review. Two big incumbents were in play: Publicis, looking after North America, and WPP, looking after most other markets except Japan. The prize on offer was global consolidation and the power that comes with it.

In the meantime, Pepsi, Coca-Cola’s greatest rival, decided to walk away from a two decade relationship with Omnicom and do a deal with Publicis. Publicis would look after Pepsi’s global media business and provide an enterprise AI solution.

That forced Publicis to withdraw from the Coca-Cola global pitch and resign its North American incumbency. All of this happened in a matter of weeks.

So Coca-Cola was left with WPP as the only major incumbent in the international review. Their negotiation leverage was weakened, so they pivoted and redesigned the review to bring in two more holding companies: Omnicom and Dentsu.

Dentsu is interesting because it used to look after a lot of the Coca-Cola business years ago and still has relationships in Japan. Omnicom, freed from Pepsi, suddenly became available for Coke for the first time in decades.

That is where we were until very recently. Then WPP decided to withdraw from competing for the North American business as well. Based on that, we assume they remain the incumbent in many other markets, but they are no longer an option for Coke in North America.

Within two or three weeks, the two agencies that were competing for Coca-Cola in North America are both out. Coca-Cola is in what feels like a doomsday scenario. Not because Omnicom and Dentsu are weak, but because the process they designed has completely unraveled.

Their two strongest incumbent holding companies have removed themselves from the contest. Neither of them now wants to work with Coca-Cola in North America, at least under the current pitch conditions, and much of that sits outside Coca-Cola’s direct control.

Tom Denford: One of the big implications is what this says about agency consolidation. Deals like the Omnicom IPG merger and Publicis’ integrated model were built partly to serve advertisers such as Coca-Cola. Big brands wanted big, integrated partners. Now those consolidations mean there are fewer chairs to sit on.

Coca-Cola is suddenly playing musical chairs with fewer agencies and tighter conflicts. That is not just true for Coke. We talk every week to advertisers who see the benefits of consolidation but complain that they have fewer real choices.

Some observers even say it feels upside down, as if agencies are choosing advertisers rather than the other way around. In some cases that is exactly what is happening.

There is also the optics of being gazumped by your biggest rival. Historically, Coca-Cola has seen itself as the category leader and Pepsi as the challenger. This sequence of moves throws that narrative in the air.

Publicis appears to have rejected the Coca-Cola vision or at least seen more opportunity in PepsiCo’s. WPP may have stepped back to avoid the risk of enduring a long, painful pitch and still losing in the end. Omnicom and Dentsu now see opportunity where previously they were locked out.

David Indo: For marketers, the implications fall into a few buckets.

If you are a Publicis client, you want to protect your talent, access to innovation and the Marcel powered growth system. You need to make sure that onboarding PepsiCo does not quietly downgrade your own status.

If you are an Omnicom client, you know the last thing that group wants is another high profile loss. If your contract is up for renewal, or you need to recalibrate commercial or staffing terms, this is a sensible moment to tighten things up without necessarily triggering a pitch.

If you are with WPP, you want absolute reassurance that their operating system remains focused on delivering value for you and that you are prioritized for top talent. These market conditions are a good excuse to ask hard questions and demand attention.

We are also hearing a specific question from Omnicom clients: what did Pepsi see that we did not see. They want to understand whether there was some flaw in the Omnicom model that Pepsi spotted first.

Tom Denford: Finally, we talk about Media Palooza. This Coca-Cola process was meant to be wrapped up by the end of the year. Now it will drag into 2027, colliding with an already congested pitch market.

The capacity of big holding companies to lean into new pitches is finite. When more of that capacity is tied up in mega reviews and complex transitions, the rest of the market feels the strain.

We are already sensing that some advertisers are thinking differently about their next move. Instead of automatically inviting Publicis, WPP and Omnicom, they are asking more about Dentsu, Horizon, Havas, Stagwell and strong independents.

Forward thinking advertisers are challenging agencies to organize themselves in new ways around their business. That is one of the healthy outcomes of this Media Palooza. Writing a sharp, progressive brief is one of the most powerful things a marketer can do.

David Indo: There is more to this story than we yet know, and it will continue to evolve. The key is not to get lost in the drama but to use it as a prompt to stress test your own media partnerships and strategy.

Tom Denford: As always, if you found this helpful and want to learn more, head to idcomms.com. You can start your journey with ID Comms if you are thinking about how to navigate the next year in media and beyond.