Dive Brief:
- Florida grocery chain Publix is facing a growing backlash after the Tampa Bay Times reported the business gave $670,000 over the past three years to gubernatorial candidate Adam Putnam, who vocally supports and has received backing from the National Rifle Association.
- The chain, which controls about 40% of the state's market share in grocery, says it supports Putnam’s pro-business stance, and that it has not given money to the NRA. Since the Parkland High School shooting, Putnam had drawn controversy by opposing the state's new restrictions on gun purchases, the newspaper notes.
- Putnam oversaw regulation of the grocer's 785 stores as leader of the state’s Department of Agriculture and Consumer Services. In an email to CBS News, Publix said future political donations might be handled differently. "We regret that some of our political contributions have led to an unintentional customer divide instead of our desire to support a growing economy in Florida," the statement noted. "As a result of this situation, we are evaluating our processes to ensure that our giving better reflects our intended desire to support a strong economy and a healthy community."
Dive Insight:
Publix could be forgiven for doing what countless businesses do: throwing money behind politicians or political parties in hopes of encouraging favorable legislation.
But this incident shows grocers and other companies that they conduct business-as-usual at their own peril. Today’s millennial and Gen Z consumers pride themselves on being well-informed, and they want to know the businesses they support also support causes they believe in. Although Publix was quick to point out it supports Putnam because of his "pro-business values" and not his pro-NRA stance, the fallout shows such arguments may not be enough to sway the public, especially on hot-button topics like gun control.
Already, calls to “#boycottPublix" on Memorial Day weekend have spread on social media, and some shoppers are posting receipts from other supermarkets online to show the money Publix has lost. As various outlets have reported, David Hogg, a Parkland student turned prominent activist, will stage "die-ins" at two Publix stores today wherein protesters will lie down on store floors for 12 minutes.
Publix, which has stores in Georgia, Alabama, South Carolina, Tennessee, Virginia and North Carolina, in addition to Florida, could see a significant sales hit over the all-important Memorial Day weekend. About 60% of Americans plan to barbeque over the holiday weekend, according to finance website WalletHub, and meat and seafood sales will reach $1.5 billion for Memorial Day.
While no one can know the impact of the boycott until weekend receipts are tallied, what's certain is that consumers have become increasingly vocal and more likely to boycott companies during the Trump presidency. As Business Insider has reported, food giant Kellogg along with Warby Parker, Allstate, Nest and SoFi stopped advertising on Brietbart News site after customers raised concerns about its controversial editor at the time, Steve Bannon. Starbucks has faced boycotts over various political controversies, and many shunned Papa John’s after the pizza-maker's CEO John Schnatter linked the company's poor performance to NFL players taking a knee during the national anthem. All of this shows a heightened willingness by consumers to boycott companies in order to get their message across.
It certainly appears Publix — which prides itself on friendly customer service and is striving to build a presence beyond Southeastern states — didn’t intend to land in the middle of the gun control debate. But this situation should serve as a powerful message to players throughout the grocery industry: Buyers are paying close attention to the causes and the politicians backed by food companies, so proceed with extreme caution.