5 Blogs Before Lunch

Domino's Wants Nothing to do with MTV's Jersey Shore

MTV recently introduced its own version of "The Real Housewives" series--but instead of five or six boob-jobbed social climbers, MTV's house has eight Italian-American 20-somethings living together in Seaside Heights, N.J., for the summer.

Let the beer bongs, big hair, and pizza deliveries begin!

But wait, we might not see any pizza deliveries on this show.

Domino's Pizza has pulled its advertising from the show after reviewing the new reality show's content.

Domino's did not buy ads to run specifically during Jersey Shore, but the show was included in a rotation-buy of spots scheduled to run across the network.

"One of the (Domino's) ads happened to show up and once we saw what the program was, we decided that the content wasn't in keeping with what we're all about," Tim McIntyre, Domino's vice president of communications, is quoted at TVGuide.com.

And Domino's isn't the only one who is taking offense at the show. UNICO National, a national Italian-American organization slammed the reality show’s portrayal of Italian-Americans as “offensive.” The show relies on “crude stereotypes and highlights cursing, bad behavior and violence” says the group.

Even the New Jersey Convention & Visitors Bureau is concerned with the show. "There seemed to be physical violence, a very brash attitude toward sexuality — certainly a lot of focus on vanity,” according to Daniel Capello the executive director of the Jersey Shore Convention & Visitors Bureau. “It portrays the Jersey Shore as a culturally vapid place. I don’t want someone from Bucks County saying I’m not going to the Jersey Shore when they see these, frankly, shocking images of people who are visiting there.”

The show premiered to 1.3 million viewers.

Sources: Pop Crunch, TV Guide, New York Magazine and TMZ

Jolt Cola Demise Seems Imminent and is Getting Nasty

Jolt Cola is known as the Mother of Energy Drinks. Now, the end of Jolt Cola may be upon us.

Before there was Redbull, Rockstar or Monster, there was Jolt--offering twice the caffeine with all of the taste of regular cola, for nearly a quarter of a century.

But Jolt’s buzz is starting to fade. As a category, sales of energy drinks seem to have hit their peak, with the long history of double digital sales growth figures coming to a screeching halt due to the economy and changing tastes (the energy "shot" is now the rage). Jolt seems to have been hard hit by this trend, and filed for bankruptcy in 2008.

Now its restructuring plans are looking shaky.

The founder of the company is now suing three of Jolt Co. Inc.’s board members and a New York City private equity firm, claiming they all helped drive the company into the ground by chasing a slowing marketplace. The private equity firm now wants to sell off Jolt's assets--something Rapp apparently does not want to see happen.

Carl J. Rapp is looking for $31 million in damages and a court order blocking any sale of Jolt’s assets.

More to come...

Sources: Reuters, WSJ.com, and the Democrat & Chronicle

Lord & Taylor and Racoon Dog Fur

The fight over (faux) fur continues.

Thanks to PETA and the Human Society, many consumers have stopped wearing real-fur coats, and have converted to faux fur.

But it seems there is a problem with what certain companies consider "faux."

It seems that Lord & Taylor has been using raccoon dog fur, claiming it to be "faux fur."

Apparently, raccoon dogs are typically skinned alive for their fur, and were being mislabeled as faux, raccoon, coyote or rabbit fur.

But thanks to pressure from the Humane Society, Lord & Taylor has announced that it will remove raccoon dog fur and enact tougher guidelines with regards to labeling and advertising fur garments, WWD reports.

"Lord & Taylor has taken a major step forward by ending the sale of raccoon dog fur and by voluntarily strengthening its labeling standards for all fur products," Jonathan Lovvorn, vice president and chief counsel for animal protection litigation for the Humane Society, told WWD.

Additional source: New York Magazine

In related news, Tim Gunn has written to Miss Wisconsin USA and Miss Florida USA pageant organizers, calling on an end to the tradition of awarding real fur coats to winners, PETA told StyleList.

Meanwhile, t

Porsche Suing Crocs Over Cayman Brand

Crocs, the rubber shoe company, has had its share of troubles lately, with sales tumbling.

Now it has another bit of trouble to deal with: a trademark infringement lawsuit from Porsche.

Porsche?

Yep, it seems that the fine folks at Crocs decided to name a shoe "Cayman."

This may sound similar to the automobile that Porsche produces called "Cayman."

In mid-May of this year, Crocs received a letter from Porsche notifying them of the alleged trademark infringement. At the end of July, Porsche filed a notice of injunction in German courts against the European use of the Cayman name by Crocs.

For consumers, I doubt if there will be much confusion over whether Crocs are actually designed by Porsche, or if you can get a Crocs' inspired sports car, but protecting a brand name is serious legal business.

Here's AutoBlog's take on the matter:

While we realize that few of our readers would ever confuse a pair of Crocs' Cayman with the Porsche Cayman, one has to wonder if Porsche is taking this a bit too far. Rumor has it that the Cayman Islands in the western Caribbean are monitoring the situation and already working on their own legal defense.

Chrysler and Pizza Hut Leave BBDO for Fallon and Martin Agency

Advertising agency BBDO officially lost two big accounts this week, as Chrysler and Pizza Hut awarded their business to two new agencies.

Chrysler went to Fallon of Minneapolis and Pizza Hut is headed to the Martin Agency of Richmond, VA.

Fallon and the Martin Agency will pick up plum accounts to add to their rosters, but both brands are going to need some major brand overhauls in order to survive.

Chrysler and Pizza Hut have both been battered by the recession--tossed off their axles by the economy, but let's face it, these brands were on shaky ground before the recent crisis.

Let's hope Fallon and Martin Agency like a challenge.

Pizza Hut is lagging behind other fast-food and even casual-dining chains, with same-store sales down 13% in the U.S. last quarter, on top of an 8% drop during the previous quarter. AdAge reports that Bob Kraut, VP-marketing communications has left the company "to pursue other opportunities."

As for Chrysler, last month (November) the only big carmaker to report a large drop was Chrysler, whose sales fell 26 percent. Hyundai, in contrast, reported a 46 percent increase. As a result of these sales numbers, Chrysler dealers have asked the company to pull new television ads and restore regional marketing budgets.

The good news for Fallon and Martin Agency: there's a lot of opportunity to improve sales, and hopefully, Chrysler and Pizza Hut will be open to new ideas to save the companies.

Comcast Buys NBC. Time for Change our Perception of Cable Companies

In an amazing power shift, cable company Comcast will be acquiring television network NBC Universal.

The $30 Billion deal was announced today.

What's so amazing about this deal that had been widely discussed for nearly eight months? It is the idea that one of the three (now four) grand networks of television will now be owned by the guys that operate the un-sexy infrastructure of the television industry--you know, the guys in those white cargo vans. Think of it like having the gardener buying Donald Trump's Mir-a-lago.

Now, don't get me wrong, cable operators have long been in control of much of the television world. It is just that they've never been in complete control in what has always been the heart and soul of the television industry--the flashy, sexy creative and celebrity process. The perception has always been that cable operators are the guys hang around in cargo vans wearing overalls, while the television network executives drive their Maserati's out to Malibu to meet with Tom or Jay.

It is a worn-out perception (obviously) but one that breathes one last gasp as this deal is struck.

And, it is a deal that needed to be made. NBC has languished in fourth place among the major broadcast networks, and as The New York Times points out "the economics of the broadcast television business has deteriorated in recent years amid declining overall ratings and a decline in advertising. By contrast, cable channels have continued to thrive because they rely on a steady stream of subscriber fees from cable companies, such as Comcast."

Plus, the fact that NBC was owned by General Electric, a company even less in touch with the television industry than cable operators makes this decision even easier.

At the end of the day, and perceptions aside, this is probably the best thing that could happen to the television and cable industries--bringing the creators and the distributors closer together.

GM Replaces another Chief. Fritz Henderson Leaves and Edward Whitacre Jr. Steps In

Ford seems to be on a good path to recovery. And, it is to early to tell whether the Fiat-Chrysler relationship will have better results than its time spent with Daimler-Benz.

But GM appears to still be struggling. They failed at selling off Saturn, Saab and Opel (the latter was a GM Board decision). And, for CEO Fritz Henderson, who replaced disgraced chief Rick Wagoner, was asked to resign in March by President Obama's auto task force. It seems that for Henderson, it's three strikes and you are out.

General Motors announced yesterday that Henderson is resigning and will be replaced on an interim basis by the automaker's new chairman, Edward Whitacre Jr.--the former AT&T chief.

According to an article in The New York Times, it wasn't just the Saturn, Saab and Opel failures, it was if G.M. was to truly reinvent itself — "as the company promised in commercials after a government bailout helped it emerge from bankruptcy — the board decided that the 25-year veteran of G.M. was too tied to the company’s past mistakes to bring a fresh approach that could help reverse its decades-long slide."

Interestingly, GM's new chief--Whitacre, has already appearing in GM ads, introducing a 60-day, money-back guarantee on its cars and trucks--surely a sign that this ouster was in the making for some time.

Gillette, Nike and Gatorade Are Sticking By Tiger Woods

Nike, Gillette and Gatorade have issued statements in support of their celebrity spokesperson: Tiger Woods in the light of day after his 2 am one-car accident over the Thanksgiving weekend.

Woods is currently the face of some of the world's biggest companies. In addition to Gillette, Nike and Gatorade, Tiger endorses Accenture, American Express, AT&T, Tag Heuer and EA Sports, among others. The golf legend pulls in about $100 million per year in endorsement deals, according to Forbes.

According to Brandweek:

The only danger for Woods involves any offers that are currently on the table. "Right now if I'm a brand manager negotiating to do a global campaign, do I pull out because maybe it could get worse?" said Sturner. Still, "long term will it hurt? No. Look at Kobe Bryant right now. Look at the other stars that have had worse incidents that have dampened their reputations [and rebounded]. It's about what happens on the golf course. That will make or break his marketing appeal."

Tiger Woods: Keeping Corporate Sponsors On Edge

Tiger Woods' 2am car crash and media drama this weekend undoubtedly kept (and is keeping) a lot of corporate marketers on edge. Was he OK? How badly was he hurt? Were alcohol or drugs involved? Was it tied to a domestic dispute over a mistress?

When signing an endorsement deal with a celebrity, marketers immediately link their brand with the reputation of the celebrity. They sign on for the positive associations--and hope to avoid negative brand reputations.

Tiger has been pretty straight-laced up to this point, and most likely considered "a good risk" by marketers.

But the activity outside Wood's home in Florida this weekend may have thrown millions of dollars in endorsements (and company sales) up in limbo.

Consider the number of high-profile endorsement deals he put on the line when he headed out that driveway in his Cadillac Escalade: Accenture, AT&T, EA Sports, Gatorade, Gillette, Golf Digest, Net Jets, Nike, Tag Hauer, Tatwee: The Tiger Woods Dubai, TLC Laser Eye Center, Upper Deck, not to mention th PGA Tour.

The drama will most likely continue for a little while longer, and keep those marketers with one eye on TMZ.com, and on speed-dial with the their publicity and legal departments.

Bloomberg Acquires Businessweek...for the Price of a NYC Apartment

For a price tag of a New York City apartment, news service Bloomberg will acquire BusinessWeek from publisher McGraw-Hill Companies.

The price tag is reportedly somewhere between $2 million and $5 million, along with the assumption of the magazine's liabilities.

As context, $2 million right now could also buy you a rather ordinary 3 bedroom 2 bath apartment on the Upper East Side.

Reuters is reporting that the magazine, which could lose as much as $40 million this year, could be retitled Bloomberg BusinessWeek.

Bloomberg, of course, is controlled by New York City Mayor Michael Bloomberg.

The company's chief content officer Norman Pearlstine, who will become BusinessWeek's Chairman said: "The interaction with Bloomberg News is going to be all pervasive. We will have editors from Bloomberg News and BusinessWeek working together.