Repercussions of an advertising tiff between the two industry leaders prove how politically-induced differences can decelerate the growth of US companies.
Affiliating to politics continues to be a key strategy for corporations intending to expand businesses through extensive favors from the ruling government. Even still, political intervention can’t always be profitable for business; especially in an indifferently segregated country such as the US. Breitbart News Network, a right-wing news website in the US, has recently demonstrated the strength of its political tie-ups and gearing up for a corporate war with The Kellogg’s Company. Breitbart has targeted the multinational food manufacturer for provoking the website’s conservative style of doing business, instrumenting a social media battle under “#DumpKelloggs.” According to reports, Kellogg’s had revoked its advertising from Breitbart, alleging the website for being racist and sexist. Breitbart’s snappy comeback included boycotting the brand’s food products as the website kept posting articles on how its readers should no longer include Kellogg’s popular cereals in their breakfast henceforth.
Deserting Frosted Flakes or Froot Loops might have been really tough for several US consumers, but trade analysts recorded a considerable dip in Kellogg’s bourse performance. And, the miff with Brietbart News has been assumed to be the cause of Kellogg’s abrupt decline in the stock market. Kellogg’s has been the latest US corporation to experience adverse impact of a politically-induced crossfire. The maker of Pop-Tarts and Eggo waffles is expected to sharply steer its way out of this politicized trench in the coming days.
Till then, rebuilding their relations with right-wing or conservative customers of the country is likely to be a key undertaking for Kellogg’s. The food-making conglomerate has faced the brunt of several hot-tempered calls from Breitbart loyalists as the website kept on slandering Kellogg’s advertising withdrawal through its articles. With recent elections concluding at a through-and-through victory for Republicans, the right-wing party of US, companies must address this Kellogg’s-Breitbart spat as a lesson on how businesses in the country are likely to be potential political targets in the years to come.