By: Geoff Dougherty

October 7, 2005, Chicago Tribune

The Coca-Cola Co., battling years of slow growth, has hired an advertising agency known for its edgy and creative Nike work to produce commercials for a campaign next year for the flagship Coke brand.

A Coke official confirmed that Wieden & Kennedy will create spots for a new North American campaign for the iconic soft drink, but declined to comment on whether the company's agency of record, New York-based Berlin Cameron & Partners, would lose the account.

Both Cameron and Wieden will continue working with Coke over the short term, said spokeswoman Susan McDermott.

"Having more than one agency is not unprecedented for us," she said.

The soft-drink giant spent $2 billion last year on worldwide advertising and marketing. But its market share last year slipped slightly to 43 percent of the soft drink market, according to Beverage Digest.

Its top-selling Coca-Cola Classic brand saw sales volume fall roughly 3 percent last year.

Wieden first began working with Coke about 10 years ago on a campaign for OK Soda, a beverage targeted at young consumers that failed.

Since then, McDermott said, the agency worked on Coke spots in the late 1990s, and now does North American advertising for Powerade, the company's sports drink.

A spokesman for Berlin referred questions to Coke, and Wieden--which has U.S. offices in Portland, Ore., and New York--did not return a call seeking comment.

The Wieden spots come at a critical juncture for Coke, which is still regarded as one of the world's top brands but has stumbled since revered CEO Roberto Goizueta died in 1997.

The company is on its third CEO since Goizueta's death, and has seen competitor Pepsi gain market share, while the overall market for cola faces increasing competition from sports drinks, fruit drinks and bottled water.

"Coke continues to struggle to find a marketing campaign that will really drive the business," said Tim Calkins, a marketing professor at the Northwestern University business school. "Any time you're struggling to find a message, the easiest thing to do is change the agency."

John Sicher, publisher of Beverage Digest, said Coke has made some important moves since Neville Isdell took over as CEO last year. The company named a new marketing chief and is talking with agencies about a new campaign that will feature a single, global message.

The company has not made a decision on which agency will spearhead that effort, but Wieden is vying for that business as well.

Meanwhile, Sicher said, Coke's advertising has been "on and off. Some if it has been good. Some has been somewhat less than good."

Wieden counts among its clients Miller Brewing Co., Starbucks and ESPN.

Among the agency's eye-catching work is a series of recent ads for Nike featuring female athletes talking frankly about their body parts. One woman announces, "my butt is big," while another discusses her "thunder thighs."