As it reels from massive staff cuts and a major structural reorganization, Coca-Cola Co.'s flagship North American business unit has at least one piece of good news to cheer about: it's got its advertising mojo back.

The latest Coke ads, mainly out of New York's Berlin Cameron/Red Cell, are based on the campaign platform "Coca-Cola... Real" and feature a combination of celebrity performances and humorous depictions of everyday life. In one celebrity spot, Penelope Cruz chugs a Coke and then burps. In another, Courtney Cox pours a Coke for hubby David Arquette in their living room.

"Real" - a nod to the soft drink's classic tagline "The Real Thing" - will be rolled out internationally over the course of the year (see also a/v club, Boards, March 2003). Executions of the Real platform will vary in different parts of the world to ensure local relevance and connection with consumers.

Meanwhile, the Vanilla Coke spots by Interpublic's Martin Agency of Richmond, VA, show a mafia henchman 'testing' the drink on American Idol's Simon Cowell and hip-hop diva Missy Elliott. Each spot concludes: "Vanilla Coke: smooth and intriguing. Like we said."

The new creative is being widely hailed as a clear improvement over previous Coke commercial efforts, such as "Life Tastes Good" - scrapped in the US following the Sept. 11, 2001 terrorist attacks and leaving Coca-Cola without a slogan for a year and a half.

Recent surveys suggest the new tack is working. USA Today's weekly Ad Track poll, taken shortly after the campaign debuted in early January, found that, of those familiar with Coke ads, 25% liked them "a lot" compared with the poll average of 21%. The ads were particularly popular among younger consumers: almost 30 per cent of 18- to 24-year-olds, and 35 per cent of 25- to 29-year-olds, gave the top approval rating.

Still, there's no doubt the past 18 months have been somewhat flat for Coca-Cola. According to analysis by Morgan Stanley, the company cut North American ad spending in 2002 by nearly 30%, while rival Pepsico went the other way, raising its budget by 20%. Coca-Cola spent almost 40% less on advertising regular colas, chiefly Coke Classic, and about 60% less on diet sodas.

The company did reallocate some of the money saved to new brands, namely $24 million US to Vanilla and Diet Vanilla Coke. Overall, Coca-Cola spent $206 million on ads in 2002, versus Pepsico's $264 million.

Ben Deutsch, a spokesman with Coca-Cola in Atlanta, concedes the company has been going through a "painful time" dealing with the March 27 termination of 1,000 employees across its North American operations. Additional cuts were made corporately. Coca-Cola declined to go into detail, but 500 people were reportedly laid off at its Atlanta headquarters.

Deutsch says employees are also concerned about plans toconsolidate Coke's bottle/can, fountain and Minute Maid divisions into a single unit, a move announced in early January. "We've begun the integration," he confirms, adding that the "process will continue for the next several months."