Brand Moves 17 - Interbrand
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June 22 2020
Brand Moves 17
Seventeen weeks ago, when the gravity of the situation became clear, we
started regular reporting on how brands were dealing with the COVID-19
crisis. What’s now becoming clear is that the current climate is one of near-
perpetual disruption. So we made the decision to keep on telling the stories
of inspiring brand leadership and strategy amid the latest crises in an anxious
world. Our goal remains the same: to provide an up-to-the-minute source
of information, inspiration and insight on brand moves as they happen
Corporate & Marketing
Multiple companies announced that they would either honor or recognize Juneteenth as a paid holiday for
their employees this year, as a sign of support for the Black community. Juneteenth, a blend of the words
June and nineteenth, honors the end of slavery in the United States. Celebrated on June 19, it marks the
day in 1865 that Maj. Gen. Gordon Granger of the Union Army landed in Galveston, Texas, and informed
slaves there that the Civil War had ended and slavery was abolished. To honor the holiday, some companies,
including Google, J.C. Penney, JPMorgan Chase, Mastercard, Nike, Lyft and Target gave employees
a paid day off while others, like General Motors, observed moments of silence. Our group of agencies,
too, participated. As John Wren, Chairman and CEO of the Omnicom Group, put it: “We are recognizing
June 19th, or Juneteenth, as a company-wide day off from work to reflect and engage on this global issue.
Omnicom stands in solidarity with the Black Lives Matter movement; diversity and equality have always
been among our core values. There is no place at Omnicom for racism or discrimination against any person
in any form. Our entire leadership team is committed to accelerating our efforts to build a more inclusive,
diverse and aware organization.” Harvard University President Lawrence S. Bacow also announced that
the university was to close to observe Juneteenth. All faculty and staff receives a full day of paid time off.
Bacow wrote in an email to faculty and staff that the holiday offers a “moment to acknowledge and celebrate
the promise of a new beginning… I cannot imagine a better year for Harvard to begin recognizing its
significance.” This Friday will mark the 155th Juneteenth celebration in the United States. The announcement
comes after weeks of protests over anti-Black racism after the murders of George Floyd, Breonna Taylor and
Tony McDade by police.
For some direct-to-consumer brands, lower cost per thousand impressions combined with hawking in-
demand products made the pandemic a good moment to spend more on advertising, with some marketers
doubling their planned ad spend for the second quarter. “There were a lot of brands having ‘holiday shopping’
type numbers as a result of pandemic,” said Chris Toy, CEO and founder of MarketerHire, a freelance
platform for marketers. “So Christmas came early, basically.” For DTC brands in categories like home goods,
wellness, athleisure and beauty as well as office and outdoor furniture, increasing the ad budget generally led
to higher conversion rates at cheaper than normal ad rates which allowed them to make “their second quarter
bigger than any of their [previous] fourth quarters,” said Kevin Simonson, vp of social at Wpromote, adding
that the DTC brands that could increase their ad spend during the second quarter probably spent between
50% to 100% more than planned. For example, Toy said that “one brand increased their ad budget from low
five figures in January to over $1 million in June. They’re seeing profitable growth including their ad spend, so
they’ll spend as much as they can.”
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Retail & Fashion
PepsiCo has said it will drop the image of Aunt Jemima and rebrand the line of pancake mix and syrup
that has borne the name since 1889. The parent of Quaker Oats Company, which has owned the brand
since 1926, did not specify what the new name will be or what the updated packaging will look like. “We
are starting by removing the image and changing the name,” said Kristin Kroepfl, vice president and chief
marketing officer of Quaker Foods North America. “We will continue the conversation by gathering diverse
perspectives from both our organization and the Black community to further evolve the brand and make it
one everyone can be proud to have in their pantry.” PepsiCo said consumers will start to see the packaging
changes without the Aunt Jemima image in the fourth quarter this year and that the name change will be
announced at a later date. The decision comes at a time of reckoning for many brands in the aftermath of the
death of George Floyd in police custody in Minneapolis on May 25 and the ensuing protests against police
brutality and racial injustice. “We recognize Aunt Jemima’s origins are based on a racial stereotype,” Kroepfl
added. “While work has been done over the years to update the brand in a manner intended to be appropriate
and respectful, we realize those changes are not enough.” The news follows PepsiCo CEO and chairman
Ramon Laguarta’s announcement that the CPG giant is pledging $400 million for initiatives on racial justice
and equality. It also follows dairy brand Land O’Lakes’ decision to eliminate another longtime mascot based
on a racial stereotype earlier this year. Laguarta announced on Twitter that the CPG conglomerate would
be committing $400 million to fund several initiatives centered around racial justice and equality. The $400
million will be spent over the next five years as part of an effort to “to lift up Black communities and increase
Black representation at PepsiCo,” he said. In recent weeks, Laguarta said that he and the company’s senior
leadership team had met with Black community leaders and members of Mosaic, PepsiCo’s African American
employee resource group, to discuss what sort of action the company could take to improve not only within
its own walls but also externally.
Very shortly after PepsiCo made the decision to change the name and packaging of its Aunt Jemima brand,
rice brand Uncle Ben’s said it plans to follow suit by “evolving the visual brand identity.” Sara Schulte,
external communications manager for Uncle Ben’s parent company Mars Food North America, said, “We
have indeed been considering a more substantive change and have begun that work even before news of
Aunt Jemima.” She did not specify what that “substantive change” will look like or what the timing will be,
saying only, “We are evaluating all possibilities.” In 2007, Mars reportedly spent $20 million to reimagine Uncle
Ben as the chairman of the company. Consumers were able to tour a virtual office, which included chairman
Ben’s emails, voicemails, datebook, executive memorandums and a portrait in a gold frame, but the office
and title are now gone. Now, Schulte said, the global brand is aware it has a responsibility to take a stand in
helping to put an end to racial bias and injustices. “As we listen to the voices of consumers, especially in the
Black community, and to the voices of our associates worldwide, we recognize that now is the right time to
evolve the Uncle Ben’s brand, including its visual brand identity, which we will do,” she added.
US consumer brand Colgate-Palmolive has said that Darlie toothpaste – infamous for its racist branding and
history – will be rebranded. The toothpaste was known as “Darkie” until 1989 when the owners apologised
and replaced the name in English. But local advertising assured customers that it would still be called “Black
People Toothpaste” in Chinese, as it was for decades. “Darlie is a Chinese brand owned by Colgate and our
Joint Venture Partner, Hawley & Hazel,” a spokesperson for Colgate-Palmolive said. “For more than 35 years,
we have been working together to evolve the brand, including substantial changes to the name, logo and
packaging. We are currently working with our partner to review and further evolve all aspects of the brand,
including the brand name.” Darlie’s Hong Kong manufacturer, Hawley & Hazel, is owned by the New York-
based Colgate-Palmolive. Despite its decades-long commitment to Darlie, the firm has previously launched
Black History Month campaigns and its own Black Leadership Network initiative.
Apple is temporarily shutting some of its U.S. retail stores again after cases of Covid-19 spiked in some areas
across the country. The closures will impact 11 stores across Florida, Arizona, North Carolina and South
Carolina. “Due to current COVID-19 conditions in some of the communities we serve, we are temporarily
closing stores in these areas,” an Apple spokesman said. “We take this step with an abundance of caution
as we closely monitor the situation and we look forward to having our teams and customers back as soon
as possible.” Cases have recently spiked in some U.S. states, prompting local governments to consider new
measures. Apple had reopened the majority of its U.S. locations, including many stores in major markets like
New York City and Los Angeles.
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Japanese shoppers queued at Uniqlo stores and crashed its website on Friday as the clothing chain began
selling face masks with breathable fabric used in the brand’s popular underwear, preparing for the coronavirus
outbreak lasting through summer. Scenes of people standing in the rain waiting for stores to open were seen
throughout Japan and broadcast on Twitter, while the online store displayed an apology to those looking for
the washable Airism masks, saying the website was inundated. Airism has been one of Uniqlo’s most popular
lines, known for allowing wearers to stay cool in the heat and during exercise. The masks are sold in three-
piece packs for ¥990 ($9.26) plus tax, and are available in three sizes. Prospects of a prolonged crisis has
encouraged Japanese consumers to buy and make reusable washable versions even as disposable masks,
initially in short supply, have become more easily available.
Amazon customers stuck at home during the Covid-19 pandemic have been buying more pet food, kitchen
tools, haircare products and athleisure wear. That’s according to a new study from web analytics firm
SimilarWeb, which looked at the buying habits of consumers on the ecommerce platform from January to
April 2020, and compared it to the same period last year. Purchases of pet supplies on Amazon were up 66%
year over year. Pet food sales were up 98%, which SimilarWeb said reflects both Amazon’s goal of driving
subscriptions of products with a recurring need to cement customer loyalty, as well as its intent to challenge
the ecommerce leader, Chewy, for a bigger chunk of the $21 billion pet food market. Pet food brands Blue
Buffalo, Purina and Nestlé owned 70% of category pageviews on Amazon in the January to April 2020
period. Amazon shoppers are also making more purchases for their homes. While the conversion rate
increase is modest from January to April 2020 (3.65%), SimilarWeb said that translates to 14.4 million more
transactions. Kitchen and dining in particular saw a 4.2% increase in conversions in early 2020, an increase of
7.8 million year over year. The top brands on Amazon include Cuisinart, Oxo and Hamilton Beach. Amazon
has also become a more popular site for beauty and personal care products during the pandemic, with
purchases up 62% year over year; between March and April 2020, the hair care category on Amazon saw
visits increase 82%. Electronics brands Asus and Logitech saw a huge jump in March and April as demand
for work-from-home equipment increased and there was an increase in customer interest in gaming products.
Emma Watson, the actor and activist who made her name as Hermione Granger in the Harry Potter films,
has joined the board of the French fashion giant Kering, in a major coup for the world’s second-biggest
luxury group. The British star, who was born in Paris, is the face of the Good On You app, which rates fashion
brands on their ethical and sustainability credentials. Watson is also known for her work with Eco Age’s
Green Carpet Challenge. She wears sustainable red carpet looks, frequently custom-made by top-tier
designers, for most public appearances. Although Kering is seen to have the environmental edge on its rival
LVMH, its top labels Gucci, Saint Laurent and Balenciaga are only rated “Not good enough” or “It’s a start”
by Good On You. She was nominated on to the board by shareholders at Kering’s AGM alongside the Ivory
Coast-born former CEO of Credit Suisse Group Tidjane Thiam, as well as Jean Liu, the president of “the
Chinese Uber” Didi Chuxing.
Guitar maker Fender is offering five high-end Custom Shop Master Built electric guitars, as well as a select
number of exclusive signed guitars by Fender signature artists, on Reverb.com to benefit Live Nation’s Crew
Nation global relief fund for live music crews. 100% of the net proceeds from the sales of the guitars, which
are featured in the Official Fender x Crew Nation Reverb Shop, will go toward helping touring and venue
crews continue to make a living during the coronavirus pandemic. Live Nation launched Crew Nation in April
to help support touring and venue crews while COVID-19 puts concerts on pause. Live Nation has committed
$10 million to the fund – contributing an initial $5 million, then matching the next $5 million in donations.
Target is raising its starting wage to $15 an hour, making it the first major retailer to permanently increase
pay during the pandemic. The retailer, which previously had a starting hourly wage of $13, has been offering
workers an extra $2 per hour in “hazard pay” since March 25, two weeks after the World Health Organization
declared the coronavirus outbreak a global pandemic. On Wednesday, it said it would make that pay increase
permanent.
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Media & Entertainment
This year’s Reuters Institute Digital News Report comes in the midst of a global health pandemic whose
economic, political, and social consequences are still unfolding. It noted increased consumption of traditional
sources of news, especially television, but also online news sources. One problem for publishers, however,
is that this extra interest is producing even less income – as advertisers brace for an inevitable recession
and print revenue dips. Against this background it is likely the industry will see a further drive towards digital
subscription and other reader payment models. The study has seen significant increases in payment for
online news in a number of countries. Across all countries, though, most people are still not paying for online
news, even if some publishers have since reported a ‘coronavirus bump’. Access to news continues to
become more distributed. Across all countries, just over a quarter (28%) prefer to start their news journeys
with a website or app. Those aged 18–24 (so-called Generation Z) have an even weaker connection with
websites and apps and are more than twice as likely to prefer to access news via social media. Across age
groups, use of Instagram for news has doubled since 2018 and looks likely to overtake Twitter over the next
year. To counter the move to various platforms, publishers have been looking to build direct connections with
consumers via email and mobile alerts. In the United States one in five (21%) access a news email weekly,
and for almost half of these it is their primary way of accessing news. Voice-activated smart speakers like
the Amazon Echo and Google Home continue to grow rapidly. Usage for any purpose has risen from 14%
to 19% in the UK, from 7% to 12% in Germany, and 9% to 13% in South Korea. In April the survey found
that across six surveyed countries almost a quarter (24%) used WhatsApp to find, discuss, or share news
about COVID-19 – up seven points on average on the January survey which asked about usage for any news.
Around a fifth (18%) joined a support or discussion group with people they didn’t know on either Facebook
or WhatsApp specifically to talk about COVID-19 and half (51%) took part in groups with colleagues, friends,
or family. One in ten accessed closed video chats using platforms like Zoom, Houseparty and Google
Hangouts – many for the first time. Meanwhile Instagram and Snapchat have become popular with younger
groups for accessing news about COVID-19. Almost half of 18–24 respondents in Argentina (49%) used
Instagram, 38% in Germany. One in ten (11%) accessed COVID-19 news via TikTok in the US and 9% in
Argentina.
The Academy of Motion Picture Arts and Sciences has announced that the 93rd Academy Awards
telecast (AKA the Oscars) has been postponed by two months to April 25, 2021. “For over a century,
movies have played an important role in comforting, inspiring, and entertaining us during the darkest of
times. They certainly have this year. Our hope, in extending the eligibility period and our Awards date, is to
provide the flexibility filmmakers need to finish and release their films without being penalized for something
beyond anyone’s control,” Academy president David Rubin and CEO Dawn Hudson said. The Academy also
announced that the Governors Awards gala, which takes place in the fall, has been postponed to a later,
unspecified date. The December opening of the Academy Museum of Motion Pictures was pushed to April
to coincide with the Oscars.
Reed Hastings, the co-founder of Netflix, and his wife, Patty Quillin, have donated $120 million to the United
Negro College Fund, Spelman College and Morehouse College, the largest-ever individual gift to support
scholarships at historically black colleges and universities. The Silicon Valley executive said he hoped his
contribution would lead other wealthy individuals to give. “Generally, white capital flows to predominantly
white institutions,” he said. The record donation comes amid protests following the police killing of George
Floyd, and the national conversation about how to end systemic racism. That conversation has included
discussions about how to provide more education and job opportunities for African Americans.
Pokémon Go maker Niantic has seen significant usage changes as a result of the COVID-19 crisis. “You
could see walking distances go down,” Pokémon Go senior product manager Matt Slemon said this week.
He said changes varied widely depending on the severity of a country’s lockdowns, and even between cities
like New York and San Francisco. Niantic responded by adding shelter-in-place-friendly features like remote
raids, and announced details yesterday for the first virtual Pokémon Go Fest in late July. The event will have
challenges, games, and “free downloadable and printable paper crafts and decorations” so you can turn your
home into conference HQ. Niantic CEO John Hanke recently told reporters that the company has 10 new
titles on its roadmap, with plans to roll out two per year over the next 5 years. He hinted at plans to support
fitness, shopping and more with future Niantic titles. “We’re eager to do work in that area, where the lines
blur,” he said.
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AMC Theatres, the world’s largest exhibitor, has unveiled plans to re-open after coronavirus forced it to
close its more than 600 venues in the U.S. for nearly four months. The company is expected to resume
operations in 450 of those locations on July 15 and expects to be almost fully operational by the time that
Disney’s “Mulan” debuts on July 24 and Warner Bros.’ “Tenet” bows on July 31. As part of that process,
AMC is reducing its seating capacity in order to help people social distance, it is implementing new cleaning
procedures, placing hand-sanitizing stations throughout its theaters and encouraging contact-less and cash-
free concessions. “We didn’t rush to reopen,” AMC CEO and president Adam Aron said. “There were some
jurisdictions in some states, such as Georgia and Texas, that allowed people to reopen theaters in mid-May.
We opted to remain closed, so we could give the country time to get a better handle on coronavirus. We
wanted to use this time to figure out how best to open and how to do so safely.” AMC’s competitors Regal
and Cinemark announced their own plans to resume business earlier this week, targeting a similar mid-July
timeframe for when they expect to be fully operational.
The lockdown has spurred many to seek out new hobbies in recent weeks, and sales for UK-based lifestyle
and motoring manuals publisher Haynes have soared as DIYers and hobbyists look to learn new skills or
complete essential repairs on cars and motorcycles while garages have been closed. But it’s information on
chicken keeping that has proved most popular at Haynes, with sales of its Chicken Manual up by 1,600%.
It is currently the company’s best-seller on haynes.com, ahead of car and motorcycle workshop manuals.
Second to chickens in the lockdown chart is Haynes’ Bike Book cycling manual, whose sales have been
boosted since the Government’s announcement that cycling and cycle repairs are to be encouraged. Also
riding high was the Haynes Bike Repair Guide app, which hit the #1 spot in the App Store’s Sports category.
Fitness & Sports
Fitness companies have found creative ways to engage their members remotely by expanding online
services, livestreaming workouts on social media and offering additional lifestyle content, such as healthy
recipes and family workouts, but many leaders in the industry predict that once stay-at-home orders are lifted,
members will be ready to head back to the gym. Sharad Mohan, CEO and co-founder of the personal training
software Trainerize, said the social element of the gym is what members miss the most, suggesting fitness
brands “run in-gym challenges that spark healthy competition and camaraderie, run limited-edition, in-person
classes or offer up free trials for in-person training.” Chad Waetzig, evp of marketing and branding at Crunch
Fitness, said 83% of its members were anxious to get back to the gym. “There is a certain social component,
the benefit of getting proper coaching, and it is incredibly motivating for some people.” Waetzig shared that
roughly half of Crunch members were dissatisfied with their at-home fitness program. Mohan also predicted
that the industry will see “a long period of transition and apprehension” before members are ready to head
back to the gym. In order to combat that reluctance, he suggested fitness companies focus on a hybrid of
in-person and remote services while focusing on community-based initiatives. Orangetheory Fitness has
done just that, expanding at-home workouts for both members and nonmembers during quarantine. Chief
brand officer Kevin Keith said that “the pandemic greatly accelerated the brand’s plans to evolve as a hybrid
in-studio and digital fitness model,” adding that its in-home workouts aren’t meant to replace the in-studio
experience.
A new digital “health passport” created by the company behind the UK soccer Premier League’s Covid-19
testing could open a pathway for supporters to return to stadiums. Top flight football is resuming for the first
time in two-and-a-half months after it was suspended due to the coronavirus outbreak. Players and staff at
Manchester City, Arsenal, Aston Villa and Sheffield United will use the system, which creates a unique
code on a player’s smartphone linked to test results which is scanned on entry, to enter stadiums when they
play on Wednesday evening and it will be used throughout the next six weeks while the 2019-20 season
is concluded. Hong Kong-based biotechnology company Prenetics, who agreed a £4million deal with the
Premier League to provide their testing system, has spent months developing the health passport for use
across sport and other industries. Prenetics’ chief executive Avi Lasarow has said that it could also be linked
to government testing and antibody data so that fans could have their own individual health passport to
ensure they were not carrying the virus and could therefore potentially attend games. “This is the first time it’s
being used in sports,” Lasarow said. “It has the possibilities for scaling it up in a sport context to stadiums
and fans in a much bigger capacity. I think that’s where the future is in terms of Covid-19. Today it’s being
used for access control, it can link to accreditation and biometrics. Ultimately the capability is there for us to
facilitate the safe return of fans to stadiums.”
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contact: hello@interbrand.comBrand Moves 17
Finance
The pandemic is heralding a “permanent” shift in consumer spending, with increases in debit card and
domestic transactions here to stay, according to Visa’s European chief executive. Charlotte Hogg, who has
led the payments group’s European arm since 2017, said that lockdowns around the world had caused a
boom in online shopping and precipitous declines in cash usage: “Behaviours have fundamentally changed.”
Speaking as global economies begin to emerge from these lockdowns, she added: “It’s hard to say exactly
what the [economic recovery] is going to look like, but we think it’s going to be digital, domestic spending is
going to be important, and debit cards [rather than credit] are going to be important.” A report by Accenture
published on Wednesday predicted that cash usage would fall by an average of 30 per cent across Europe
this year. Campaigners have raised concerns that rapid changes in cash usage risk excluding older and more
vulnerable customers. However, Ms Hogg argued that digital payments could help vulnerable customers
who need to continue shielding themselves from the virus for an extended period. She also noted that small
businesses in particular would need to do more to plan for the new normal. She said Visa was working with
banks and other partners to help SMEs adjust. “Many of their business models aren’t geared for a digital
world — that’s not what they’ve had to do in the past, but now consumers are really calling for that.”
Indian telecoms giant Reliance/Jio has announced its latest inward investment, the final one of their
mammoth round of fund-raising – this time $1.5 billion from Saudi Arabia’s investment fund. Starting with
Facebook in late April, the company has now raised $15.2 billion in two and a half months, selling just shy
of a quarter of the company to 10 investors. It also raised billions of dollars more by offering new shares to
existing shareholders. Reliance’s Jio Platforms is aiming to be the WeChat of India, and the fundraising has
left the company debt-free and poised to try to turn that promise into reality.
Chinese tech company Tencent is building Net City, a car-free neighborhood in Shenzhen, that is around the
size of Midtown Manhattan. The plans for the two-million-square-meter neighbourhood include parks, homes,
entertainment venues and offices but zero roads for cars; instead, pedestrians must travel by foot, bicycle,
or ferry. Net City is intended to have a “human-focused” design, as more space will be available for activities
and amenities (rather than cars), and will rely on solar panels for energy. The parent company behind WeChat
plans to complete Net City over the next seven years. Google and Facebook have been using land they
own for affordable housing projects, while Amazon built a homeless shelter. But Tencent is one-upping them
all by trying their hand at urban planning. Net City taps into a rising consumer expectation: that progressive
brands step up and become agents of local transformation – particularly in areas governments are trying (and
perhaps struggling) to address. In Shenzhen, the future home of Net City, local authorities have worked to
rid the city of pollution. Tencent’s initiative demonstrates a long-term commitment towards this mission, as
it makes its neighborhood car-free and prioritizes residents’ wellbeing needs. Thanks to the pandemic, 90%
of consumers hope to see brands partner with governments, while 86% want companies to act as a safety
net to fill in gaps in governments’ responses to the virus – and this consumer outlook is likely to extend far
beyond COVID-19.
WeWork CEO Sandeep Mathrani has said that the company is in discussions with private schools in New
York City about conducting classes in its office spaces this fall. “To allow them to get started, they can go into
some of our WeWork locations, which sort of fit well as classrooms,” Mathrani said, adding that the goal is to
help schools reduce density while still allowing for in-person instruction despite the threat of the coronavirus.
“This is another indication of the need for flexibility by companies and organizations in a world altered by
the Covid-19 crisis,” he added. “Even schools are going beyond just thinking about it in a structured way.
They’re opening their minds on how to bring children back into schools.” WeWork has over 100 locations
in New York City, according to Mathrani, who became CEO in February, five months after the company
scrapped a plan to go public last year amid valuation and governance concerns that led to the departure of
founder Adam Neumann. So far, the office-sharing company’s conversations with schools have been with
only private schools. “Obviously we will extend that to discussions with public schools if we’re able to have
that conversation,” Mathrani said. Many schools across the U.S. went to remote instruction in March as the
coronavirus pandemic intensified, but now the focus has been on how to safely resume in-person classes in
the fall. The question carries broader implications for the U.S. economy as it seeks to restart from the impacts
of Covid-19 because parents and guardians may find it difficult to return to work if schools aren’t open and
children have to stay home.
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contact: hello@interbrand.comBrand Moves 17
Travel & Hospitality
Airlines including Easyjet and KLM in Europe, Delta Air Lines and American Airlines in the United States,
and Asia’s Virgin Australia are suspending all or part of their alcoholic drinks service in response to Covid-19.
It’s part of a widespread revision of the industry’s food and drink service to minimize interaction between crew
and passengers and to ensure a safer journey for all. With face masks already mandatory on pretty much
all flights around the world, and new legislation introduced in January 2020 to curb anti-social behavior on
flights, it’s another in a line of barriers – literal and legal – to getting high in the sky. Many airlines are limiting
drink options to water only. As face masks must be kept on other than when passengers are eating and
drinking, it’s a way of ensuring passengers are lingering over their refreshments for no longer than necessary.
“Like many in the sector, our business has been impacted by the challenges of Covid-19,” says Claire Clough,
UK managing director of food-to-go chain Prêt à Manger. “Given that most people have been staying at
home during lockdown, and our shops were temporarily closed, Covid has had a severe impact on sales in
line with declining footfall.” The chain has appointed retail property consultants to renegotiate its rents, as
it struggles to right itself after the pandemic. “We anticipate it will be a long time before consumer demand
returns to pre-Covid levels,” Clough concedes. Pret stores began reopening in mid-May, although footfall
remains low, at a fifth of pre-pandemic levels. The lunch giant is pivoting to delivery to address this shortfall:
the company’s successful Veggie Pret spinoff is now available for the first time exclusively on Deliveroo, and
sales via Pret’s delivery platform partnerships are up 15 per cent over the last two months. Clough sounds a
cautiously optimistic note. “While sales overall have been slow in some of our shops,” she says, “we know
our customers have certainly missed our Chicken Caesar and Tuna and Cucumber baguettes, which has
been great to see.” People who decide to flock back to buy up sandwiches will have less choice than before:
streamlining Pret’s in-store offering to facilitate social distancing in their on-site kitchens has meant that not
all Pret classics have made the cut. Stalwarts such as the cheese and bacon croissant and egg and bacon
breakfast baguette have been brought back, as has long-time favourite the Swedish meatball wrap. However
less well-selling items such as the recently-introduced avocado toast and Asian-style veggie box are no more.
UK-based hotel guidebook publisher The AA has launched a COVID Confident assessment scheme to
“support the hospitality industry in re-establishing and rebuilding consumer confidence as parts of the UK
come out of lockdown”. It’s a free scheme, open to all hospitality establishments that pass the AA’s criteria,
though all applicants are encouraged to make a donation to charity Hospitality Action. The accreditation,
which will appear on the AA’s Rated Trips website, will indicate to customers that an establishment has in
place the necessary risk assessment, safety measures and staff training to reopen safely, in line with the UK’s
respective government guidelines as well as UKHospitality and respective trade association guidelines.
According to just-published Irish government guidelines, only pubs that serve food as well as drinks will be
allowed to open from June 29, while customers will face restrictions on how long they can stay. Pubs must
serve a “substantial meal” costing at least 9 euros, while customers have to leave after 105 minutes. The bar
will take contact details of the lead member of any group while pre-booking will be encouraged. All customers
have to be seated, putting an end to lingering at the bar, and drinkers will have to stay at least 1 meter apart.
“These guidelines are intended to provide clarity to businesses so that they can reopen safely,” Paul Kelly,
chief executive of Ireland’s tourist board, said in a statement.
Social Media
The North Face, the sports and outerwear brand owned by VF Corp., has said it’s ending paid advertising on
Facebook over concern the social media company is allowing racist content and disinformation to propagate.
“We know that for too long harmful, racist rhetoric and misinformation has made the world unequal and
unsafe, and we stand with the NAACP and the other organizations who are working to #StopHateforProfit,”
the company said in a statement following a Twitter post. REI Co-Op, which also sells sporting gear, and
Upwork Inc., an online recruitment services provider, said they will suspend advertising in July. Facebook
and its chief executive, Mark Zuckerberg, have come under fire for failing to stop the spread of political
disinformation and allowing violent or hateful rhetoric to thrive on the site. Though Facebook has pulled some
campaign ads for President Trump, the site hasn’t taken action on other posts that were removed from social
media platforms such as Twitter. Civil rights groups including the NAACP and the Anti-Defamation League
have called for advertisers to pull their money from Facebook in July.
/continued
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contact: hello@interbrand.comBrand Moves 17
Neighborhood social networking app Nextdoor says it is discontinuing its Forward to Police feature which
let users send message board posts directly to local police. The site has been under increasing scrutiny for
how it handles communications with law enforcement, and for how it handles racism among members on
its app. “As part of our anti-racism work and our efforts to make Nextdoor a place where all neighbors feel
welcome, we have been examining all aspects of our product,” the company announced in a blog post. “After
speaking with members and public agency partners, it is clear that the Forward to Police feature does not
meet the needs of our members and only a small percentage of law enforcement agencies chose to use the
tool.” Black Nextdoor users have said that posts on the app often make them feel unsafe, and that volunteer
moderators have silenced posts about Black Lives Matter protests. Nextdoor CEO Sarah Friar penned a
blog post on June 11th titled “A Nextdoor Where Everyone Belongs,” saying the company was taking steps
to improve diversity. “Racism has no place on Nextdoor,” Friar wrote. Meanwhile, Police cars have been
removed from the hit videogame Fortnite, a change that comes amid a national debate over law-enforcement
practices in response to the killing of George Floyd while in Minneapolis police custody. Fortnite is one of the
most popular games in the world, with more than 350 million players as of May, according to its creator, Epic
Games. The shooter-survival game, which normally features police cars and other vehicles, launched a new
season last week
/ends
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