Yum Brands was hoping for a brand lift from Saturday's Kentucky Derby, but instead found itself on the defensive after CEO David C. Novak stepped onto the podium following the race, grinned, and said:
"What a great day for the commonwealth of Kentucky and the world. On behalf of Taco Bell, Pizza Hut, KFC, Long John Silver's and A&W, Yum Brands is the proud sponsor of the greatest event in the
world..."
By this time, bloggers, reporters and NBC itself were already telling of the collapse of Eight Belles, who was euthanized after finishing second. "I'm happy that the CEO of Yum
is just smiling and not even caring that a horse was just killed on the track," wrote one blogger. NBC's Bob Costas says he told Novak and others of Eight Belles' fate. But Yum svp Jonathan Blum says
Novak had no idea a horse was dying. "If he knew then what he knows now, he never would have made the comment we did," Blum says.
The company is in the third year of a Derby sponsorship,
which gives it signs at the track and seven commercials during the broadcast. It started the sponsorship to increase individual shareholders, who make up 23% of its stockholders, by 2 to 3 percentage
points.
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