Stagwell, a global marketing and communications group, has launched a risk and reputation unit to advise brands on navigating an increasingly polarized consumer base.
As America’s culture war continues and the 2024 presidential election approaches, brands will be looking to avoid being in the political crosshairs on both ends of the spectrum.
The most recent and high-profile victim is Bud Light, which has faced a boycott from the right after promoting a product collaboration with Dylan Mulvaney, a transgender influencer. The boycott has sent stock prices of parent company Anheuser-Busch InBev plummeting and cut sales of Bud Light by nearly a quarter, according to consulting firm Bump Williams.
AB InBev is now in damage control mode, putting two executives on leave and running ads featuring US flags and galloping horses. “We have never wanted to be part of a discussion that divides people,” Brendan Whitworth, managing director of AB InBev’s US business, said in a statement on April 14. “We’re in the business of bringing people together for a beer.”
Stagwell’s new reputation and risk unit will seek to help brands avoid reputational hits, political backlash and steep losses in sales and market capitalization. Similar to due diligence and general governance, the unit will audit all facets of the public and internal perception of the brand to protect the brand’s intangibles.
The unit brings together the capabilities of several companies within Stagwell’s network of more than 70 agencies. It includes experts from left-of-centre strategy consultancy SKDK, right-of-centre digital agency Targeted Victory, financial communications firm Sloane & Company, creative market research firm The Harris Poll and corporate leadership from Stagwell.
Together, experts in the risk and reputation unit have worked on 12 presidential races and more than 500 state and congressional races; raised more than $2 billion for political candidates; advised more than 100 Fortune 500 companies on reputation and crisis communications; and surveyed more than 5 million people worldwide.
“Any business that wants to avoid becoming the next brand in the spotlight needs to prevent its consumers from turning on their political brains and thinking they’re voting every time they go to the store,” said Mark Penn , president and CEO. Stagwell. “Brands have a lot to lose if they don’t understand the issues and their stakeholders and stay consistent with their values. Our team goes beyond the typical crisis response by providing the full picture from bipartisan political insights to to financial insights and unique public opinion data.”
Founded in 2015, Stagwell provides services in digital transformation, research and insights, global media and content, public affairs and advocacy and creativity. The Washington, DC-based group in 2021 completed a merger with MDC Partners and today has more than 13,000 people in more than 34 countries.
