I didn’t think so.
This is simply too good not to pass on. Aside from the fact that it sells complete junk that’s full of preservatives, sugar and goodness knows what else, Jo Nova gives us another great reason not to buy Kellogg’s products:
The new marketing move by Kelloggs to insult half its customers doesn’t seem to be working out too well. Last year Kelloggs jumped into politics by loudly cancelling advertising on Breitbart saying the new media outlet didn’t fit their values… Breitbart responded with the DumpKelloggs petition, and 436,000 people pledged never to buy Kelloggs again.
The company has now reported a $53 million dollar loss in the fourth quarter. It’s shutting down 39 distribution centres, potentially sacking 1,100 workers. Kelloggs share prices are back to where they were a year ago, but Kraft-Heinz is up 31%, and Post is up by 37%. Hey, but it could be a coincidence.
To get some idea of the depth of the goodwill crater left by the Kelloggs political bomb, check out Chiefio’s Bye Bye Kelloggs flaming rant last December. He won’t give a trigger warning, but tells people who need one to “get out now”. I’ve picked a tamer paragraph:
We, the Average Joe and Average Jane have put up with this Protest Shit to the absolute limit, and we were pushed past that. It’s now broken. That means full on war. Yes, you have a pissed Germanic-Celt in your grill. I’ll “forgive and forget” in about 20 years.
When I Die.
In one simple stupid move, you have alienated about 1/2 of the country….
[TMR: yes, you want to read the whole thing here, it’s hilarious].
In Marketing 101, Kelloggs will be the star example of How to Trash A Century of Good Branding.
There are lots of reasons a company can lose money. But social media polling nosedived 75% in the weeks after Kelloggs started selling political cereal:
Citing data from Taykey, a social media analytics firm, Adweek notes that “while negative sentiment for New Balance and Pepsi has died down over the past month, Kellogg’s is facing a more sustained backlash after pulling its advertising” from Breitbart News.
“On the heels of the ad ban, Breitbart launched a campaign, #DumpKelloggs, encouraging Trump supporters to boycott Kellogg’s products,” Adweek notes. “The boycott caused Kellogg’s social media sentiment to fall dramatically, with a 75 percent nosedive, according to Taykey.”
…“There’s a cereal killer on the loose,” [TMR: (!)] the Journal reported last week, acknowledging that since Breitbart’s boycott campaign against the cereal giant, “Kellogg shares have underperformed peers General Mills and Post Holdings by 4.4 and 11.5 points, respectively.”
The incredible thing in all of this is that, in its (hopelessly failed) attempt to declare war on Breitbart, Kellogg’s foolishly tried to pander to the very people that already hate its guts. Now where has that strategy been tried before?