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Patrón Campaign Pokes Tequila Regulator That Stuck Its Product at the Border; WPP Cuts Forecasts; Readers Rate Musk’s Newest Brand

By Nat Ives

 

Good morning. Today, a distiller revives a marketing theme that triggers tequila authorities; WPP says uncertainty will weigh on client spending and new business; and the CMO Today community renders judgment on “the America Party.”

A Patron with words deliberately redacted

A mock-up of a new ad from Patrón alluding to the ‘additive-free’ messaging that has been effectively blocked by a regulator. Photo illustration: Patrón

Patrón is hoping to get around strict rules on additive-free claims with a faux-redacted marketing campaign after an earlier effort caused trouble, Katie Deighton reports for CMO Today.

The brand in February drew the ire of Mexico’s Tequila Regulatory Council with ads promising “100% Additive-Free Tequila.”

The council had previously warned brands against such terms, pointing out that additives up to 1% of a tequila by weight don’t need to be disclosed under Mexican law. The council revoked Patrón’s export certificate, keeping the tequila from entering the U.S. for four days, and the ads came down.

Patrón new “Censored Truth” campaign both bows to and plays on the dispute with copy like “100% ▉▉▉▉▉▉▉▉-▉▉▉▉ tequila.”

“The articulation that we are doing is, we think, respectful to the concerns,” said Patrón CMO Ned Duggan.

More booze news: How Suntory is marketing ready-to-drink beverages like its -196 vodka seltzer and canned cocktail On The Rocks. [Ad Age]

 
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WPP Worries

The WPP logo on display in an office lobby

Ogilvy parent WPP is grappling with client defections and the rise of artificial intelligence. Photo: Toby Melville/Reuters

WPP shares sank Wednesday after the ad giant said it expects uncertainty to weigh on client spending and new business, Dominic Chopping writes.

The owner of agencies including Ogilvy and VML predicted like-for-like revenue less pass-through costs this year will fall between 3% and 5%, down from a previous estimate ranging from flat to a 2% decline.

WPP, which is grappling with client defections and the rise of AI, is searching for a new CEO after Mark Read said he would step down.

“WPP has faced an uphill battle with stiff competition from rivals like Publicis,” which passed it to become the world’s largest agency owner last year, said Victoria Scholar, head of investment at Interactive Investor.

“The rapid ascent of very high-quality AI content risks cannibalizing WPP’s core offering,” Scholar wrote in a note.

 

Your Take on the ‘America Party’ Brand

Elon Musk wears black in front of ornate golden curtains

Elon Musk said that he created a new political party called the America Party after reigniting a feud with President Trump. Photo: Nathan Howard/Reuters

After Elon Musk announced his plan to form a political party called the America Party, I asked you how he did on the brand name. Here’s just some of what you sent back:

“Finally, a brand that unites left and right in mutual eye-roll.” —Rebecca Johnston-Gilbert

“Hard to tell if it’s a political movement or a meme in waiting. Either way, I’m bracing for the merch drop.” —Tyler Bahl

“Plus: As a name that means nothing, The America Party can mean whatever its candidates want.” —Art Norwalk

“It allows cross-issue identification rather than trying to capitalize on just one issue (i.e. Reform, no Trump, etc.).” —Joshua Canter

“I don’t think Tesla shareholders need to be worried about Musk spending too much time in politics, as he apparently devoted all of four seconds to developing this party name.” —Matt Flachsenhaar

“Even ‘American’ would have been better. Add the extra ‘n’ for narcissism. (Apologies to 1-800-Mattress.)” —Scott Kauffman

“It’s not clear what ‘America Party’ stands for, and Republicans and Democrats will both claim that they’re America’s true party. That said, Musk still has enough money to brand ‘America Party’ to mean what he wants it to mean, at least for his fan base.” —Uriah Av-Ron

“I’d like to see a Progress, Principals and People party, to make progress in energy transition, principled entitlements and personal responsibility for a civil society. The tent is big enough for Bloomberg, Gates, Musk and many centrists of both parties.” —Liz Callahan

 

Quotable

“Bro is responsible for the shortage.”

— Ermis Vassilopoulos, a 35-year-old matcha purist, in a comment on a Reddit user’s photo touting their large matcha stash. The online community for matcha lovers, which helped propel the bright green powdered tea’s worldwide popularity, is pointing fingers over the resulting global shortage.
 

Keep Reading

The Hershey's Chocolate World store in the Times Square

Hershey is getting a new CEO who championed creative brand collaborations during his time at Wendy’s. Photo: Gabby Jones/Bloomberg

The collab-loving Wendy’s CEO who brought the Thin Mints Frosty, Takis Fuego Chicken Sandwich and Krabby Patty Kollab Burger to the menu is leaving to take the top job at Hershey. [WSJ]

Virgin Atlantic is replacing its in-flight bars with more luxury suites as the high-end travel boom continues. [BI]

American Eagle stores will show up on Snapchat’s Snap Maps and sponsor a “Jeans Try-on Haul” Lens for back-to-school season. [Modern Retail] 

CMOs are demanding more structure and accountability as influencers become more deeply ingrained in their marketing strategies. [Digiday] 

Bloomberg News Editor-in-Chief John Micklethwait announced layoffs and a reorganization but said the newsroom will “end this year with a bigger newsroom than we started.” [The Wrap]

Rack Room Shoes promoted CMO Molly Hartney to the newly created role of chief digital officer. [WWD]

Dani Mariano was promoted to CEO of Razorfish U.S., succeeding Josh Campo. [Adweek]
 

 
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We bring you the most important (and intriguing) marketing and experience news every day. Write me at nat.ives@wsj.com any time with feedback on the newsletter or comments on specific items. We want to hear from you.

And follow the CMO Today team on X: @wsjCMO, @megancgraham, @dollydeighton, @patrickcoffee and @natives.
 
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