Kellogg dumps Phelps
Written on February 7, 2009
Kellogg Co., the world’s largest cereal maker, said it will not extend the endorsement contract of Olympic gold medallist Michael Phelps after a photo of the swimmer purportedly smoking marijuana was published by a British newspaper.
"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," spokeswoman Susanne Norwitz said in a statement Thursday.
Norwitz said the deal with Michael was originally intended to "support our association with the US Olympic team. We did not renew our relationship with the US Olympic Team, which expired in December 2008."
Phelps, the winner of 14 Olympic medals, has apologized for the incident that reportedly occurred during a student party at the University of South Carolina in November guaranteed approval cash loans. He called his behavior "inappropriate."
The photograph was published by Britain’s News of the World last week. It showed the 23-year-old Phelps inhaling from a glass pipe.
The smiling face of the popular athlete has appeared on Kellogg’s Frosted Flakes and Kellogg’s Corn Flakes cereal boxes. Kellogg’s (K, Fortune 500), which markets its food to families, is the first major brand to drop Phelps, citing the incident, which has erupted into a media firestorm.
Filed in: money.