Taco Bell Replaces Bozell as Ad Account Creative Partner

PepsiCo Inc.’s Taco Bell unit selected Omnicom’s TBWA International Network unit as creative partner for the company’s $200-million advertising account, replacing Bozell Worldwide.

The decision by the big PepsiCo Inc. unit is a blow for incumbent Bozell, whose Costa Mesa office has handled the account since late 1994. Bozell is a unit of closely held Bozell, Jacobs, Kenyon & Eckardt in New York. It was one of several ad agencies competing for the account.

Bozell retains responsibility for media buying. According to a spokeswoman, the company will retain “two-thirds” of the business. She declined to be more specific.

The naming of a new agency comes at a crucial time for Taco Bell, which along with Pizza Hut and KFC will be spun off by PepsiCo later this year. Like many fast-food chains, Taco Bell has faced stiff competition, with sales at stores open at least a year declining 2% in 1996.