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Kellogg to Drop Olympian Phelps

Will Let Endorsement Deal Expire at Month's End

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Michael Phelps
Michael Phelps

CHICAGO (AdAge.com) -- One bong hit seen around the world, and Olympian Michael Phelps is watching at least one contract go up in smoke. Kellogg will let the swimmer's contract expire at the end of the month.

"We originally built the relationship with Michael, as well as the other Olympic athletes, to support our association with the U.S. Olympic team," a Kellogg spokeswoman said in a statement. "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."

Kellogg also decided not to renew its Olympic Team sponsorship, which expired in December 2008.

Mr. Phelps behavior was the second black eye for Kellogg, which snagged Mr. Phelps after the Olympics, tying him into an exclusive-for-cereal deal, and keeping him off the Wheaties box.

General Mills didn't have to wait long for its comeuppance. Just three months later, Anderson Cooper raided Mr. Phelps' cabinets as part of a "60 Minutes" interview and found a box of Honey Nut Cheerios.

Mr. Phelps also has a lucrative deal with Subway, which has declined to comment on the matter. The chain has a campaign featuring the athlete ready for the airwaves. At this point, the work seems likely to be delayed.


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24 Comments
Subscribe to comments on: Kellogg to Drop Olympian Phelps
  By Sharon | Los Angeles, CA February 5, 2009 06:05:10 pm:
That one bad move does not make him a bad guy. This is a country built on second chances...
  By teafordinner | SAN FRANCISCO, CA February 5, 2009 06:13:21 pm:
I can't believe this is even a thing. Seriously? There are no bigger fish to fry than doober regulation? Kellogg's is laaaaaaaaaaaame.
  By KATHLEEN | SPOKANE, WA February 5, 2009 06:33:37 pm:
This is a damn shame.
Not surprising, but still, very sad.
  By experienceadvertising | Plantation, FL February 5, 2009 06:49:37 pm:
Stupid move in my opinion. Another company will scoop him up without a doubt and benefit from the 2012 games...
  By Anthony | Stevenson Ranch, CA February 5, 2009 06:59:54 pm:
This is a shame. Appreciating that this country has elected the last three Presidents AFTER they had admitted to casual substance abuse, makes the Kellogg position, albeit their prerogative, rather ludicrous. It would be different if pot was a performance enhancement drug. Why can't we allow the young man who has obviously trained so long and diligently to blow off some youthful steam?
  By Karen | Marietta, GA February 5, 2009 07:17:51 pm:
If Kellogg feels they gotta drop Michael Phelps for takin' a bong hit, I gotta drop Kellogg off my list of favorite munchies!
  By srminimo | New York, NY February 5, 2009 08:34:34 pm:
And brands wonder why they cannot gain people's loyalty...
  By Cornelia | Stone Mountain, GA February 5, 2009 09:08:46 pm:
I wonder what type of 'chemicals' are in a box of Kellogg's Cereal. Michael you're a young man who just experienced what most young people will experience at least once, twice, maybe more in a lifetime. Let the hypocritical stodgies whose advertising budgets are diminishing eat their cereal. Shame on them for ending the Olympic sponsorship in the same press release - a really cheap shot. Not to worry, you were successful in your Olympic qwest and you will be successful in life if you are true to yourself. This from the nation that specializes in Prozac. Right!
  By laurelmdguy | washington, DC February 5, 2009 09:35:56 pm:
this is crazy. kellogg staff/ceo's were 23 before too. lets delve into their past and stop purchasing their products.
  By Paul | Westport, CT February 5, 2009 10:23:25 pm:
Allow me to add my voice to the overwhelming criticism of Kellogg's. Upon consulting with my 18 year old daughter, straight A student, all state athlete, prestigious university, I was informed..."Michael Phelps is a cool guy with incredible focus and accomplishments. If we were to ban every individual who has imbibed to much alcohol at some point or smoked pot from this university, there would only be a handful of really big nerds left on campus." Kellogg's wake up to 21st Century reality.
  By Calle | VILLA PARK, CA February 5, 2009 11:35:51 pm:
Jesus! The guys at General Mills must be rolling in the aisles laughing. An exclusive deal with Kellogg to keep him off the Wheaties box, then it all blows up in their face. Why not skip the celebrity and put more brain cells into developing product positions that better resonate without celebrity with consumers?
  By coderedpr | Eagle, ID February 6, 2009 01:43:44 am:
Let's take a look at this from another direction.

Someone, somewhere needs to begin taking stands for the very same stances taken by previous posters: lack of integrity, lack of loyalty to values (albeit, Kelloggs values), assumption of "unacceptable" past etc.

I suspect Phelps knew the consequences as well. He'll take the money but not follow the rules to get the money?

Now who's not loyal?
  By David_M | Portland, OR February 6, 2009 03:02:37 am:
That is exceptionally foolish on Kellogs part. Popular opinion is mixed and supportive if anything; people are willing to give him another chance. It won't help them to look like a fair weather friend, and if, in several years, Phelps delivers another monster Olympics they will be sitting sadly on the sidelines. This move won't be regretted just in four years time, there are World Championships and World Records between now and then, his name will stay in the news fairly constantly. Also, if Kellog is the only major sponsor to break ranks, the situation will be even more indefensible for them. Foolish, but sadly unsurprising.
  By Musicman | NASHVILLE, TN February 6, 2009 08:47:22 am:
A very dumb move on Kellogs' part! Kellogs Raisin Bran has long been the #1 munchie for pot smokers. Now they have allienated around a hundred million or more folks,
  By Karen | Marietta, GA February 6, 2009 09:48:09 am:
Does this mean Michael Phelps can now take his rightful place...on the WHEATIES BOX?!
  By Derek Walker | Grand Prairie, TX February 6, 2009 10:12:16 am:
I wonder if this was an NFL or NBA player would we be showing the same support?

He was photographed doing something illegal! And he was caught driving drunk!

Did anyone read the article about the SuperBowl MVP, Santonio Holmes? Where are your comments in support of him in his article?

I'm just saying - shouldn't the same "tar and feather all misbehaving athletes" attitude apply here as it does for other athletes?

Maybe, someone can point out how there is a difference between these two young men?

They both mad bad decisions and they both should have to pay for that, equally.

Remember how you jumped to Mr. Phelps' defense, the next time you are lambasting an athlete that doesn't look like him for making a stupid decision.

Seriously, Kellogg is in the wrong? Wow.



I think
  By KenWheaton | New York, NY February 6, 2009 10:26:00 am:
Santonio Holmes used to deal drugs. That's a good bit different than bong hits -- legally and in the eyes of marketers.

Is that a silly distinction? Probably.

But you can hardly claim basketball and football stars have it worse. Some of them have endorsement deals despite involvement with domestic abuse, assault, rape and other violent crimes.

Ultimately, Holmes isn't getting endorsed because he's not a super star. Sure, he made one catch in the big game, but he didn't break any records, didn't carry the team, etc. As pointed out in the other piece none of those other MVPs pulled in any major endorsement deals.
  By Robert | Chicago, IL February 6, 2009 10:49:19 am:
This is a great opportunity missed by Kellogg. We are not talking performance enhancing drugs - we are talking about a college kid under extreme pressure and scrutiny doing what college kids do. This is an opportunity for Kellogg to connect with that age group. I can see something like "we are about making good and healthful choices in what you eat and in your life. People aren't always perfect in their choices but Kellogg is always there and we want to help kids make better nutritional choices.... We will be working with Phelps as he reaches out to kids about making better choices and how his hard work has paid off...."

What awesome PR that could be.
  By RyanMacDonald | Vancouver, BC February 6, 2009 12:24:23 pm:
Perhaps he can get sponsorhip on the front of 'Weed'ies?
  By Derek Walker | Grand Prairie, TX February 6, 2009 12:47:47 pm:
You missed my point or decided to ignore it. I'm talking about people lining up to defend a person who committed an illegal act, period. Whether you sell or buy drugs - it is illegal. I'm not condoning Santonio's actions, I'm just pointing out how the responses change when the athlete's skin color changes.

Kellogg is not the villain here. Folks who see this as any different are. You send the wrong message. This behavior is unacceptable be you white or black or green. Michael was wrong and he is paying for it, as he should. Even he acknowledges this by accepting his suspension.
  By Cornelia | Stone Mountain, GA February 6, 2009 01:09:05 pm:
Would everyone who has ever smoked a joint or hit the bong please refrain from Kellogg's products. Isn't Kellogg's trying to imply that their product aided Michael in winning all those gold medals? Such hypocricy. Go blow it.
  By lwsmith10011 | new york, NY February 6, 2009 03:55:16 pm:
President Obama should invite Phelps to the Oval Office for a few lines . .
. . . of support.


³Old Friends Say Drugs Played Bit Part in Obama¹s Young Life²
http://www.nytimes.com/2008/02/09/us/politics/09obama.html
  By wotruthinkin | Pelzer, SC February 6, 2009 07:36:55 pm:
What young adult whether not famous or thrown into being a celebrity in these United States has not experimented with marijuana? Everyone makes mistakes thus erasers on pencils. Is Kellogg's this unforgiving?? This has to be one of the most ignorant decisions Kellogg has made. I have used Kellogg products all of my life (54 yrs); however, I have just thrown EVERY Kellogg product in my house out. I will NOT be using Kellogg in the future. I would suggest you re-think the decision of a bunch of self righteous money hungry hypocrites!
  By Cornelia | Stone Mountain, GA February 6, 2009 08:33:20 pm:
Come on Texas, I'm African-American and I stand by Michael Phelps. He's not selling it and this has absolutely nothing to do with race - not this one. I didn't even hear the Santorio story - but selling is definitely different than smoking it. - Third time Stone...Oops Mountain (but it's legal) had something to say!
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