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Starbucks Signs BBDO To Battle Slowing Sales

A week after losing long-time client Pepsi to Omnicom sibling TBWAChiatDay, BBDO added Starbucks to it roster. The coffee chain spent nearly $60 million on domestic ads last year (not including online spending); Pepsi spent about $90 million. Starbucks parted ways with Wieden + Kennedy in September after four years.

BBDO was behind the high-profile Election Day campaign that saw the chain give away a 12-ounce free cup of coffee to those who voted (or didn't but said they had).

Meanwhile, Starbucks said yesterday that it "expects to face a very difficult economic environment throughout fiscal 2009" and believes that sales at established restaurants will decline in its fiscal year ending September 2009. Shares dropped 4% on the news.

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