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Kellogg's Stock Takes Big Hit After Phelps Bong Controversy


I'm no expert on the stock market, but this doesn’t look good for Kellogg's:

Kellogg Co. Stock -- February 2009:


As the chart shows, the company's stock took an immediate dive following its decision to drop Michael Phelps over the infamous bong hit photo. What began as a coordinated boycott by drug reform organizations quickly escalated into a full-blown media frenzy as major news outlets picked up the story. Pot-friendly websites like Digg.com began directing massive traffic to news coverage that was critical of Kellogg's anti-marijuana posturing, thereby increasing the campaign's visibility among likely supporters.

The cumulative impact of all this negative publicity is helpfully illustrated by The Vanno Reputation Index, which monitors the public image of leading corporations:
Out of the 5,600 company reputations Vanno monitors, Kellogg ranked ninth before it booted Phelps. Now it's ranked 83. Not even an industry-wide peanut scare inflicted as much damage on the food company's reputation. [Business Insider]

In the current economic climate, it would be silly to think we're solely responsible for Kellogg's falling stock. Still, the Vanno data clearly shows that we've dealt a substantial blow to the company's reputation at the worst possible time. Whether or not we actually had a considerable impact on Kellogg's bottom line is beside the point. What matters is that we sent an unprecedented message to corporate America that reefer madness is bad for business.

For far too long now, the drug war has been sustained by a corporate culture that embraces anti-drug propaganda at every turn. Just as our press and politicians have struggled to come to terms with evolving public attitudes about drugs and drug policy, corporate America has remained enslaved by the tired mindset that a healthy public image is best secured through hardline anti-drug posturing.

The Phelps saga may soon be regarded as the moment when all of that changed, the unforeseeable, yet inevitable moment when the invisible hand of America's marijuana culture finally became a fist.

Update: Many have pointed out, and I agree, that Kellogg's falling stock is much better explained by the economy than the boycott. I thought I did a sufficient job of drawing this distinction in the post, but I can understand how the title and tone of the overall post might lead some to conclude otherwise. So for the record: the point of the post is not that the marijuana reform community crashed Kellogg's stock. I don't believe that to be true. The point is that our message gains much better traction at a moment like this. The last thing Kellogg's wants is a highly publicized boycott in the middle of an economic crisis.

I've been skeptical of previous boycott proposals that have circulated among reformers in the past, but this effort has been a massive success. In terms of media coverage and the subsequent slaughter of Kellogg's corporate reputation ranking, we couldn't have asked for a more visible impact than we've managed to achieve.

Just because Kellogg's hasn't formally surrendered to us somehow doesn't mean we didn't kick their ass. I'm sure they are utterly stunned by the backlash they received, and that's what matters.

Cops Going to Prison for Botched Drug Raid That Killed Elderly Woman

Justice was finally served in the case of Kathryn Johnston, as three officers were sentenced to prison today for their role in the botched drug raid that took her life.

These officers crossed the often all-too-thin line that separates drug cops from common criminals, and they will pay for what they did, as well they should. We can only hope that today's outcome serves as a reminder to others in uniform who've forgotten what it means to protect and serve. Alas, this comment from the judge suggests that Atlanta's problems with rogue cops are far from solved:

A federal judge who sent three fallen cops to prison for a notorious drug raid that left an elderly woman dead said Tuesday that Atlanta Police Department performance quotas unduly influenced the officers’ behavior.

"It is my fervent hope the Atlanta Police Department will take to heart what has happened here," U.S. District Judge Julie Carnes said. At the close of an emotional two-day hearing, Carnes sentenced former officers Gregg Junnier, Jason R. Smith and Arthur Bruce Tesler to between 5 and 10 years in prison.

At the hearing, Tesler’s lawyer provided examples of other Atlanta police officers breaking the rules or violating the law and said a disturbing culture of misconduct pervades the force. [Atlanta Journal Constitution]

Thus, even in its finest hour, our justice system remains crippled by the enemy within. There is nothing unique about Atlanta's police culture that brought this tragedy to life. Everywhere the drug war is fought, you will find police who have become indifferent to the very laws they've sworn to uphold.

Disabled Iraq Vet Loses Home Because of Marijuana Arrest

Scott West lost his legs fighting in the Iraq War and now he's lost his home thanks to the war on drugs:

Newlyweds Scott and Samantha West drove their SUV through the gate of the exclusive housing community, winding upward to an empty cul-de-sac that offers commanding views of the surrounding valleys.

For months, the young couple visited this site and dreamed of their bright future, ever since a charity that serves wounded veterans announced last year it was building a house for Scott at no charge.
…
In January, just two days after the couple had returned from their honeymoon, the charity took back its gift after learning that Scott West had been arrested on marijuana charges in 2007 and pleaded guilty in December to a felony of possession with intent to distribute. [St. Louis Post-Dispatch]

West maintains (believably, in my opinion) that the marijuana was for personal use and he's never sold any. His lawyer convinced him that he'd be better off pleading guilty than fighting the charges, so that's what he did. My guess is that large doses of marijuana were helping him cope with the pain of getting his damn legs blown off in Iraq.

Of course, the war on marijuana is predictably evil, but what about the charity that took West's house away? They didn't have to do that. Surely, they have a strong explanation:

Homes for Our Troops founder John Gonsalves did not respond to several requests for an interview.

Oh. Well, I'm not terribly surprised that they couldn’t find the words to defend passing judgment on wounded soldiers for which medicines they use to cope with their condition.

Someone should start a charity that gives free homes to medical marijuana patients who get their lives destroyed by the drug war.