Snacks juggernaut Frito-Lay’s newest item is a chip off the old block– shoppers in Cedar Rapids, Iowa, describe it as a knockoff of Procter & Gamble’s Pringles.
In that city, often used for test marketing, a potato chip war is starting to flare up between Pringles and newcomer Lay’s Stax. Both come in a cylinder canister.
Pringles is well-established with a $440 million annual volume, while Frito-Lay is licking its chops, trying to steal some of its rival’s sales in stacked potato crisps.
Lay’s Stax is more than a decent name–quite descriptive while riding on the banner of the equally established Lay’s potato chip brand, overall sales of $1.1 billion-plus annually, according to Information Resources Inc.
“They’re [Lay’s Stax] doing pretty well,” says a source at a Cedar Rapids supermarket chain. With the chips priced competitively, “it looks like they’re taking away some of Pringles’ business.”
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Significantly, P&G and Frito-Lay already do business with each other. Procter supplies its fat-substitute olestra for Frito’s Wow! Potato Chips. Fat-free Pringles also contain that ingredient.
What this skirmish in Cedar Rapids will lead to is anybody’s guess. But war has been declared, and things won’t be the same in the chip or crisp battles far from Pringle Street in Finneytown, a suburb of Cincinnati. That street inspired the brand name, which was introduced in 1968 by Cincinnati-based P&G. Interpublic picks Dooner: On Jan. 1, the new boss of Interpublic Group of Companies will be John J. Dooner Jr., 51, now chairman-chief executive of McCann-Erickson World Group, its biggest unit with $21 billion billing. Dooner on Wednesday was named Interpublic’s president-chief operating officer, effective April 1, and he also was appointed chief executive designate, taking over as CEO in 2001.
In the latter post, he’ll succeed Philip H. Geier, 65, who will continue as Interpublic chairman. Geier since 1980 has been CEO of Interpublic ($46.8 billion in 1999 total capitalized billing). Its units here include Chicago-based Draft Worldwide. Jim Heekin, 50, became president-CEO of McCann-Erickson Worldwide Advertising on Jan. 1 and it’s expected he’ll become CEO of parent McCann-Erickson World Group.
– Clive MacLean, recently president of FCB Direct Chicago, is leaving to become president of the Masters Institute, a San Jose, Calif.-based school, which includes a distance-education program specializing in high tech. MacLean will commute from Chicago, reporting to Les Nicolae, founder-CEO of Masters, which offers degrees in two-year accredited programs.
MacLean was executive vice president-managing director of CM Partners, a Rolling Meadows-based direct marketing agency acquired early last year by FCB Chicago. Derek Moore, recently senior vice president, executive creative director of FCB Direct, becomes executive vice president-managing director of this unit. Also, Kevin Tromp was named senior vice president, chief operating officer of FCB Direct, moving up from senior vice president of client service.
– Focus Media, a Santa Monica, Calif.-based media-management firm terminated and sued last week by Sears, Roebuck and Co., has filed a counterclaim in California. Sears’ lawsuit is for at least $3.5 million. The retailer alleges that Focus didn’t make payments to media on time. Focus lost an estimated $200 million in Sears media billing, most of it shifted to WPP Group’s MindShare, as reported Friday in this column.
– Women’s Advertising Club of Chicago picked these finalists for Ad Woman of the Year: Linda Wolf, CEO of Leo Burnett USA; Dana Anderson, executive vice president, director of account planning, FCB Chicago; Marlena Peleo-Lazar, recently managing partner, deputy executive creative director of Ogilvy & Mather Chicago, who on April 1 becomes vice president-chief creative officer of McDonald’s USA; and Athena Golianis, category director, retail advertising, and Jennifer LeMay, an executive creative director, both with Euro RSCG Tatham.
Strictly Personal: Birthday greetings to Greg Chadaranek, 41; free-lance writer Jane Ammeson, 42; Tim Pontarello, 36 (Leo Burnett Co.); Jeannine Callahan, 71; restaurateur-entrepreneur Arnold Morton, 78; Rachel E. Johnstone, 29; Donna Marek, 56 (Balmoral Race Track); twins Stacy and Bess Maniatis, 22; and Lisa Krepps, 41 (DePaul Law School instructor).