Kelloggs stocks drop

[VapedG13]

As the chart shows, the company's stock took an immediate dive following its decision to drop Michael Phelps over the infamous bong hit photo. What began as a coordinated boycott by drug reform organizations quickly escalated into a full-blown media frenzy as major news outlets picked up the story. Pot-friendly websites like Digg.com began directing massive traffic to news coverage that was critical of Kellogg's anti-marijuana posturing, thereby increasing the campaign's visibility among likely supporters.

The cumulative impact of all this negative publicity is helpfully illustrated by The Vanno Reputation Index, which monitors the public image of leading corporations:
Out of the 5,600 company reputations Vanno monitors, Kellogg ranked ninth before it booted Phelps. Now it's ranked 83. Not even an industry-wide peanut scare inflicted as much damage on the food company's reputation. [Business Insider]

In the current economic climate, it would be silly to think we're solely responsible for Kellogg's falling stock. Still, the Vanno data clearly shows that we've dealt a substantial blow to the company's reputation at the worst possible time. Whether or not we actually had a considerable impact on Kellogg's bottom line is beside the point. What matters is that we sent an unprecedented message to corporate America that reefer madness is bad for business.

For far too long now, the drug war has been sustained by a corporate culture that embraces anti-drug propaganda at every turn. Just as our press and politicians have struggled to come to terms with evolving public attitudes about drugs and drug policy, corporate America has remained enslaved by the tired mindset that a healthy public image is best secured through hardline anti-drug posturing.

The Phelps saga may soon be regarded as the moment when all of that changed, the unforeseeable, yet inevitable moment when the invisible hand of America's marijuana culture finally became a fist

[killerweed420]

Just goes to prove, you can still make a difference in a free society with your buying power. I'd like to see some more of this. Maybe target companies that do drug testing when its not required. Maybe start posting companies that DON"T drug test and we can start spending our money there.

[hedgehog]

General Mills is getting my money now (of course the wife likes Cinnamon Toast Crunch so they were before) but that didn't stop me from contacted Kellogs. I let them know I would no longer be a customer of theirs.

[FakeBoobsRule]

Sadly, I don't think it's making that much of a difference yet.

Kellogg released it's quarterly earnings on 2-05-09 and missed by 3 cents ($.50 estimate, $.47 actual). That was the same week if not day they dropped him.

Next, the Dow Jones Industrial Average is down about the same percentage, 10% for the same time period.

I am going to do my part however to help spread the word to boycott them and to really watch what you buy to make sure my money and anyone who listens money isn't going to them.

[StickyfingahZ]

General Mills is getting my money now (of course the wife likes Cinnamon Toast Crunch so they were before) but that didn't stop me from contacted Kellogs. I let them know I would no longer be a customer of theirs.


Cinnamon Toast crunch is the Sh!t!!!!! :thumbsup:

Nice article,thanks for posting it!:thumbsup:

[zeitgeist]

I boycotted their shit. When you look at the nutrition facts, its crap you dont want in your body anyways

[RamblerGambler]

Also consider this:
Out of the 5,600 company reputations Vanno monitors, Kellogg ranked ninth before it booted Phelps. Now it's ranked 83. Not even an industry-wide peanut scare inflicted as much damage on the food company's reputation.
Kellogg's Brand Damaged By Dumping Michael Phelps (http://www.huffingtonpost.com/2009/02/24/kelloggs-brand-damaged-by_n_169694.html)

[axxxxe]

Boycott there product and sold my stock. Corporate America can kiss my well you guys know what they can do.

[VapedG13]

Looks like they had alot of leftovers




Soon after a British newspaper published a photo of what appeared to be Phelps smoking marijuana, Kellogg's announced it would not renew the swimmer's endorsement contract - never mind the eight gold medals he won at the Beijing Olympics.

Apparently, that left only one problem: what to do with the boxes of Corn Flakes and Frosted Flakes bearing Phelps' toothy grin. The answer seemed pretty clear two weeks ago when the local Food Bank took delivery of nearly 2 tons of the cereal.

"So, though Kellogg's and their star spokesman hit a patch of rough water, San Francisco's hungry just got thrown a life preserver," Food Bank spokeswoman Gayle Keck wrote in an e-mail.

The boxes flew off the shelves, but the food bank is keeping a few as souvenirs.

Although it was considered a coup when the cereal company snapped up Phelps ahead of General Mills' popular Wheaties, Kellogg's was spooked in February when the picture appeared of Phelps puffing on a bong at a college party.

Although companies like Subway and Speedo felt Phelps deserved a second chance, Kellogg's issued a statement: "Michael's most recent behavior is not consistent with the image of Kellogg. His contract expires at the end of February and we have made a decision not to extend his contract."

Some customers saw that statement as sanctimonious. Phelps shouldn't have been smoking marijuana, they said, but compared to the horrible behavior shown by some professional athletes, he was hardly a dangerous criminal.

"They were trying to make a PR statement, but it rang hollow," said Bob Dorfman, executive creative director at San Francisco's Baker Street Advertising.

In a way, jokes Dorfman, Kellogg's decision is a little questionable: "I always thought cereal was the ultimate munchie food," he said.

Kellogg's isn't actually saying that it dumped the cereal boxes on food banks - a spokesman for the cereal company did not return a call - but it is a logical conclusion.

For starters, said San Francisco Food Bank executive director Paul Ash, it has become unusual for companies to offer cereal.

"It's a very tough item to get," Ash said. "In the last six or eight years, it's become very hard to get ahold of."

The sudden appearance of about 3,800 pounds of flakes would indicate that someone was trying to dump some unwanted stock.

"It seems that way," Ash said. "We do regularly see products with packages that are no longer desirable."

The Food Bank, of course, is delighted. With the downturn in the economy, donations of packaged foods are down. It is also important, Ash says, that the cereal company donated to the hungry rather than simply throwing the product away.

As for those who use the Food Bank, few seem troubled by Phelps' marijuana problems.

"The boxes have kind of flown off the shelves," Ash said.

[TurboALLWD]

Looks like they had alot of leftovers


HAHA that is awesome. I hope Kellogg is wiped off the face of this earth. Hypocritical bastards.