Still “Fingerlicken Good”?
We’re all masked up in isolation with hazmats under our hazmats, so now is probably not the peak strategic time to run a “fingerlicken good” commercial. But go ahead Yum Brands’ Kentucky Fried Chicken (KFC)!
Amid advice from the highest levels of government to wash our hands regularly, advertising watchdogs are clamping down on conflicting messages broadcast on television. Britain’s Advertising Standards Association (ASA) is about as strict a regulator as you’ll find anywhere in the world, and it’s getting inundated with consumer complaints on this topic, a big problem for big brands.
Molson Coors, for example, recently pitched Coors Light as “the official beer of working remotely.” Stay-at-home stocks are soaring, Zoom with video conferencing software and China Online Education with home schooling. It’s no wonder Molson investors wanted in on the act. But that promotion apparently makes light of corporate attempts to safeguard employees. We’re not supposed to be drinking heavily from home, so it’s been yanked!
Even Hershey’s, the feel-good all-American chocolate bar maker, has kicked up a storm by featuring too much handshaking and hugging in its promotions. This is true!
Investors need to ready up for reduced marketing budgets from certain brands and different target channels. That could mean slower revenue growth heading into the next earnings season, which could knock some stocks down. Keep those shorts within easy reach!