• Ad Age, Friday, February 6, 2009 11 AM

Kellogg will let swimmer Michael Phelps' contract expire at the end of February and has also decided to not renew its Olympic Team sponsorship, which expired in December. "Michael's most recent behavior is not consistent with the image of Kellogg," the company said in a statement. A photograph of Phelps taking a hit from a bong has traveled wide and far in recent days.

Emily Bryson York reports that the photo of Phelps' behavior was a "second black eye for Kellogg," which signed him to an exclusive-for-cereal deal, keeping him off General Mills' Wheaties box. But three months later, Anderson Cooper raided Phelps' cabinets as part of a "60 Minutes" interview and found a box of GM's Honey Nut Cheerios.

Subway, which has a campaign featuring the athlete ready for the airwaves, declined to comment on the photo. Its work seems likely to be delayed, Bryson York says.

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