š» Why Is a Banana Worth $6.2M, but Spirit Airlines Isnāt?
The Weekly from The Liquid Lunch Project, Issue No 143 November 22, 2024
Dessert Drama: Whoopi Goldberg may have 69 candles on her birthday cake, but itās Staten Islandās Holtermannās Bakery that was feeling the heat. After claiming the bakery snubbed her order over politics on The View, Whoopi sparked a dessert-fueled PR firestorm, complete with borough press conferences, defamation chatter, and Staten Islanders lining up to support their local sponge cake sanctuary. Want to make sure your brand survives its own Whoopi moment? š This week on The Liquid Lunch Project, PR pro John P. David shared the ultimate playbook for managing reputation disastersābefore they eat you alive. š° Listen here.
ON TAP THIS WEEK
š Troll Patrol: How to manage PR like a pro.
š Easy, Breezy, TikTok Sleazy? CoverGirlās comeback plan.
š Basic Economy, Meet Basic Bankruptcy: The future of Spirit airlines.
š¬ Jaguarās (Questionable?) Rebrand: Out with the old, in with the electric.
š„High Fashion, Higher Rents: This street in Milan slides into first place.
š© Low Interest Rates Are Lying to You (and other funding red flags).
š And from Around the Web: Demolitions, Deep-Sea Doom, and a $6M Banana.
THE CLASSROOM
PR Crisis Survival Guide: Protect Your Business When Things Go Sideways
by Luigi Rosabianca
Your reputation is like your favorite coffee orderāone mistake, and itās ruined. In todayās world, a single bad review or viral post can make your business the next trending hashtag (and not in a good way). But donāt worry, weāve got the playbook for small biz PR damage control, straight from the pros. From handling trolls to dodging DEFCON-1 disasters, this guide will have you fixing your rep like a boss.
Ready to learn how to avoid becoming the next PR horror story? Click below to read the full article on our blog.
HEARD ON THE STREET
š If a Lipstick Falls in a Forestā¦.
CoverGirl, a drugstore brand built on glossy magazine ads that Coty now owns,Ā is staging a comeback that hinges on influencers.Ā CoverGirl was built on decades of glossy magazine ads featuring stars likeĀ Christie Brinkley,Ā Tyra Banks,Ā Taylor Swift, and Rihanna. With sales sliding for drugstore makeup brands, its growth hinges on thousands of social-media influencers.Ā Ā
For context, CoverGirl was introduced in the early ā60s by Noxzema as a medicated foundation to conceal blemishes. The brand soon began positioning itself as āclean makeupā with a natural, girl-next-door look.Ā CoverGirl was acquired in 1989 byĀ Procter & Gamble, which introduced the brandās famous tagline, āEasy, breezy, beautiful.āĀ Magazine ads helped propel the careers of rising stars like Banks.Ā When social media exploded in the 2010s, mainstream brands lost ground to indie labels. In 2015, P&G said it would unload CoverGirl andĀ dozens of other brands in a sale to Coty.
In New York, Miami, and other cities, Coty has TikTok content-development studios where influencers shoot videos. Its influencer lineup includes makeup artistĀ Karen Sarahi Gonzalez, known asĀ Iluvsarahi, who has nearly seven million Instagram followers, andĀ Lexie Learmann,Ā who posts about fitness, food, and beauty products and has more than a million Instagram followers.Ā Coty is also expanding its digital sales with the help of a multidisciplinary team that Nabi likened to a startup.Ā CoverGirlās market share is holding steady, while rival legacy brandsĀ LāOrĆ©al Paris and Maybelline are losing ground. The analysts said that makeup sales are declining in drugstores but are growing onĀ Amazon, where CoverGirl is gaining a share.Ā Apparently, the influencers of today are the super models of yesteryear.
āļø In Bad Spirit
From industry disruptors to kaput. Spirit AirlinesĀ filed for bankruptcy protection this week amid growing losses but will continue to operate during the restructuring. Spirit has had a hard go of it since its merger with JetBlue Airways was blocked on antitrust grounds.
Spiritās business model of offering rock-bottom fares and fees for everything from seat assignments to cabin baggage was a success with bargain-hunting customers, allowing it to expand over more than a decade.Ā Their novel low-fare and add-on-fee model inspired similar offerings from major carriers likeĀ Delta,Ā American, andĀ United, which rolled outĀ basic economy fares.Ā Unfortunately, the pandemic drove up costs for the notoriously budget-friendly airline. The company hasnāt made a profit since 2019, lost $335M+ in the first half of the year, and is the first major US airline to file for bankruptcy in 13 years. While that all sounds grim, Spirit has already secured $300M in bondholder financing and says it expects to exit bankruptcy by Q1 ā25.
Spirit had a deal to merge with fellow budget airlineĀ Frontier before JetBlue swooped in with a bid in April ā22. Spirit shareholders backed JetBlueās all-cash offer.Ā Regulators blocked this deal by alleging the JetBlue deal (for $3.8B!) would drive up fares and reduce competition. The airlines had argued it would help them better compete, especially in the U.S., where four airlines control about three-quarters of the market.Ā Industry insiders expect Frontier and Spirit to resume talks in the coming months; ahem, after January 20th - coincidentally, President-elect Trumpās Inauguration Day!
šāā¬ The Big Cat Purrs
Running a business that's a bit dusty and stagnant?Ā Look to Jaguar for a master class in rebranding.Ā Jaguar's new logo is generating hearty publicĀ discourse, and we don't even know what the cars look like yet. The company unveiled a modern design overhaul this week that bucks its longstanding old-money aesthetic as part of a huge marketing shift as it gears up to release a new electric fleet of cars in 2026.
Why? Jaguar is in its doldrums. US sales have been down 80% since '17, and the automaker only moved ~8K vehicles last year, compared to 350K each by BMW and Mercedes. Instead of continuing to compete (and lose) against those premium makers, Jaguar is relaunching itself as a high-end, luxury EV brand, hoping to sit among the ranks of Bentley and Rolls-Royce.Ā Design-wise, the old growling Jag is gone, replaced byĀ fresh logos and a sleek new typeface that left fans perplexed. But the real change will come on the lot. At the end of this year, Jaguar will stop producing its only current model, the best-selling F-Pace SUV, and will replace it with three EV models. The company said the new cars will cost roughly twice as much as the previous ones.
Jaguar will preview its concept car for the first time on Dec. 2 during Miami Art Week.Ā Humans are a perceptive, visceral bunch...especially when it comes to shelling out thousands on a vehicle.Ā Tell the story, sell the product.Ā Ditto with your company!Ā Be bold to get it sold.
šø High Street, Higher Price
New Yorkās Fifth Avenue is no longer the costliest address for retailers. According to real estate firm Cushman & Wakefield, Via Monte Napoleone in Milan is now theĀ worldās most expensive street in terms of top storefront rents, with a square foot going for $2,047, up 11% from last year. This marks the first time in decades that a European high street earned the priciest-on-the-planet designation. Meanwhile, Fifth Avenue slipped to second place, with the prime square foot price staying flat at $2,000.
It is the first time a European street has topped the global rankings in the firmās flagship retail report āMain Streets Across the World.ā Now, in its 34th edition, the report focuses on headline rents in 138 best-in-class urban retail locations across the globe, many of which are linked to the luxury sector, utilizing Cushman & Wakefieldās proprietary data. The global index ranks the most expensive destination in each market.
Milan is experiencing a luxury tourism boom, and the uber-wealthy have relocated to the city in droves to take advantage of generous tax incentives. Second, itās a matter of classic supply and demand.Ā This short street makes retail space more competitive and drives up prices. Gucciās parent company, Kering, bought a $1.4B building on Via Monte Napoleone this year. Looks like Milanās got the rents, and NYCās got the blues.
THE MONEY MINUTE WITH MRM
The Hidden Pitfalls of Not Fully Understanding Small Business Funding
with Matthew R. Meehan
Think funding your small business is as simple as signing a dotted line? Nope. Between sneaky "low interest rates," hidden fees, and repayment terms designed to ruin your day, funding can feel like a minefield. Overfunding can strangle your cash flow, while underfunding leaves you scrambling. And donāt even get us started on mixing personal and business creditāitās a recipe for disaster.
The kicker? Most business owners donāt even realize the traps until itās too late. Want to avoid turning your financial lifeline into a financial anchor? Read the full article to learn how to dodge these common funding pitfalls.
š And when youāre ready to secure working capital the right wayā¦go ahead and schedule a call with one of our Credit Banc Business Advisors; weāve got 15+ funding programs on the table and will help you find the best fit for your biz.
AROUND THE WEB
Start 2025 with a BOOM: In Macon, Georgia, New Yearās Eve will feature fireworks of a different kindāa $2.6 million demolition of a 16-story hotel thatās been vacant since 2017. š„ Once a hangout for Elvis (and tied to a 1990s fraud scheme), the building will be obliterated to make way for āsomething better.ā Fingers crossed the nearby 200-year-old church doesnāt join the party by accident.
Nothing to āSeaā Here: In Southern California, oarfishāgiant deep-sea creatures tied to Japanese folklore and bad omensākeep washing ashore. Scientists blame changing ocean conditions, but folklore enthusiasts whisper āearthquake.ā Either way, if a 10-foot āmessenger from the Dragon Palaceā is flopping on your beach, itās time to pay attention. š
Art World Goes Bananas (Literally): A duct-taped banana just sold for $6.2 million at Sothebyās, proving once again that the art world runs on irony and absurdity. Crypto mogul Justin Sun now owns the rights to stick a banana to a wall, call it āart,ā and plans to eat the fruit for an āartistic experience.ā Sure, dude. Sure. š ššø