Marketing Agency BBH secures contracts for 7UP and RC Cola, following Keurig Dr Pepper's decision to close its in-house advertising unit.
A New Chapter for 7UP and RC Cola: BBH USA Steps In
In an unexpected move, BBH USA has snagged two tantalizing brands from the Keurig Dr Pepper portfolio – 7UP and RC Cola. Sources close to the situation confirm that BBH will take on creative duties for these iconic sodas.
The change follows Keurig Dr Pepper's decision to dissolve its in-house agency, Liquid Sunshine, back in May. BBH, keeping their cards close to their chest, chose to stay mum on the matter. Keurig Dr Pepper remained tight-lipped as well, declining to comment before our deadline.
With a whopping $157 million spent on advertising in 2024, Keurig Dr Pepper has quite the war chest. However, 7UP and RC Cola each clocked under $1 million in ad spend for the same year.
The beverage behemoth owns a plethora of more than 125 brands in North America, including Dr Pepper, 7UP, Canada Dry, Keurig, La Colombe, Lavazza, and Swiss Miss.
The shift away from an in-house model took place mere months after Drew Panayiotou joined as the CMO of U.S. refreshment beverages in November. Prior to this, Andrew Springate, the previous CMO, shuffled over to a role managing strategic partnerships.
Liquid Sunshine once boasted a staff of over 80 creatives spread across 125 brands within the Keurig Dr Pepper portfolio. Their impressive portfolio included a 2023 7UP rebrand and an advent calendar for Keurig.
BBH USA's roster is now embellished with these two brands, joining a prestigious list that includes Goodyear, PayPal, Grey Goose, and Patrón. The merger wasfinalized in 2018 when Keurig Green Mountain and Dr Pepper Snapple Group tied the knot in a deal valuing $18.7 billion, forming Keurig Dr Pepper. In Q1 of their most recent earnings report, their net sales skyrocketed 4.8% to $3.6 billion.
Last year, Dr Pepper toppled Pepsi to claim the number two spot as America's favorite soda brand, right after Coca-Cola. In an interesting turn of events this year, Sprite joined the lineup, taking the number three position.
Interestingly, the closing of Liquid Sunshine could signal a broader industry trend. More and more companies are reassessing their internal creative resources versus external agency partnerships, owing to economic pressures, creative output challenges, and difficulties quantifying return on investment. By adopting a hybrid model, Keurig Dr Pepper can tap into external expertise, adapt to market needs, and ensure cost efficiency in an era of tariffs and economic volatility.
[Source: AdAge][Further Reading: Forbes, Digiday]
BBH USA's portfolio growth is set to increase with the addition of 7UP and RC Cola, as they take on creative duties for these brands. The acquisition could potentially boost BBH's finance returns, given the brands' past advertising expenditure. Despite Keurig Dr Pepper's substantial advertising budget, these two brands had relatively low ad spend in comparison.
