A Brand Name Bankrupted A Health Food Company
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In the world of life science marketing, where the perception of health is key to so many successful campaigns, it is important to not only develop products with strong health-focused brand identities but also to be willing to be flexible to changes in the market and the world at large.
One of the most infamous cases of a company that managed to collapse as a result of being inflexible was Jeffrey Martin Incorporated, which had in 1981 bought a popular brand of appetite-suppressing sweets intended to be used as a way to help people with diets.
Initially launched in 1937 according to a trademark application by The Carlay Company, the sweet was popular in no small part due to the endorsements obtained by Irving Crull, president of Dow Chemical who had bought Campana Corporation who had bought The Carlay Company.
Mr Crull knew Bob and Dolores Hope, as well as acting power couple Tyrone Power and Linda Christian, and together they managed to spread what had become known as a Reducing Plan that helped people to lose weight.
By the time Jeffrey Martin Inc. had bought the rights, it was thought that the sweets could become more popular, but there were two problems.
The purchase went through in 1981 and the product was known as Ayds Reducing Plan Candy.
By 1981, the Human Immunodeficiency Virus and its associated Acquired Immunodeficiency Syndrome (HIV/AIDS) had been recognised by the United States Centre for Disease Control.
The disease, which was believed to be incurable and untreatable and often cause significant weight loss due to the wasting effects of AIDS’ advanced stages, immediately drew comparisons to the weight-loss sweet of the same name.
Initially, the company was flippant, claiming that sales had increased and that the sweet had existed for nearly half a century so the disease should change its name.
This attitude backfired immeasurably. Sales halved as the association with one of the most devastating pandemics in history hurt sales, and Ayds was sold to the DEP Corporation, which briefly changed its name to DietAyds before cutting its losses.