Kraft and the "Gay Games"

The New American ^ | 04.01.06 | Warren Mass

[Coleus]

This year the Seventh "Gay Games" -- an Olympic-style event with an unusual twist -- will be held in Chicago July 15-22. However, a leading corporate sponsor of the games may have gotten into a public relations nightmare that won’t go away.

The other day I received three emails from the brokerage firm where I maintain three investment accounts: one a fund to keep me from starving in my “golden years,” and the other two set up to provide a college fund for two of our grandsons.

The purpose of these emails was to notify me that Kraft Foods, Inc., of which I am a stockholder, is holding its 2006 Annual Stockholders’ Meeting on April 25, 2006, and that if I did not wish to attend the stockholders’ meeting in Chicago, I could go to a website to cast a proxy vote.
 
Why did I invest in Kraft foods? Although I am a very small-time investor, I am very reluctant to gamble with whatever investment monies I manage to extract from my humble salary. When my Uncle Bob Davidson got out of the Marine Corps. following World War II, my grandfather, who had worked for Lipton Tea all during the Great Depression told him: “Get into food. No mater how tough times get, people always have to eat.”

My uncle followed that advice and went to work for Kraft, which in those days mainly made cheese. It was the only company he ever worked for. He started as a route salesmen, became a regional sales and distribution manager before he retired, and he lived very nicely on a Kraft pension until he died several years ago. With a track record like that, I decided this was the sort of investment for me.

Now I was being asked to exercise my voting privileges. I followed the link to the proxy voting website and — like a typical small-time investor — had no idea who the candidates for the director positions were. I approved the directors’ recommendations until I got down to question number 4. It read: “Dissociation from the 2006 and all future so-called ‘Gay Games.’”

Now I am sometimes prone to misreading something the first time around. Once, while traveling westbound on I-10 in Los Angeles, I misread a sign as “Garden State Parkway,” even though I knew the GSP was in New Jersey, some 2,500 miles away! As I neared the sign I saw that it read “Golden State Freeway.” Maybe I head misread the question. I blinked my eyes and reread the question again. Sure enough, it said: “Dissociation from the 2006 and all future so-called ‘Gay Games.’”

I also noticed that the directors recommended against voting for the dissociation from the “Gay Games.” At that point, I still wasn’t sure what the “Gay Games” were, but having walked the streets of Provincetown, Massachusetts, New York’s Greenwich Village, Decatur Street in New Orleans, Venice Beach, California, and San Francisco (among other places) I could well imagine. I wanted my investment money subsidizing something called the “Gay Games” about as much as I wanted to purchase two tickets to Brokeback Mountain! I quickly checked the box “For” dissociation on all three proxy ballots.

Then my investigative journalist’s curiosity caused me to do a little Internet research on the matter. I found that this year’s Gay Games will be the seventh such event, and will be held in Chicago and environs July 15-22. I also found that in past years, the games generated a considerable amount of controversy, and drew the attention of such pro-family Christian champions as Rev. Jerry Falwell and Rev. Donald E. Wildmon.

In a 2005 article entitled, “Kraft’s ‘Gay Games’ PR debacle," Rev. Falwell wrote that Kraft “has found itself in the middle of a public relations nightmare after its corporate leadership decided to sponsor the Gay Games VII.” Falwell explained: “The Gay Games is an Olympic-style series of events where homosexuals from around the world compete. But the Gay Games are not just about athletic competition. Today I visited the American Family Association’s website that illustrates some of the after-hours activities that go on during the Gay Games. These photos can be seen at this AFA website: www.afa.net/activism/gaygamesproof.html.”

Falwell also cautions the reader: “PLEASE BE WARNED — these photos contain partial nudity and lewd depictions. But I feel it is important that consumers who purchase Kraft products see what goes on at these Gay Games (billed as “athletic and cultural” events) in order to understand what types of activities Kraft Foods is actually sponsoring.”

The American Family Association is headed by its Founder and Chairman Donald E. Wildmon, whom I interviewed in the print edition of The New American for January 30, 1989. In an article posted at the AFA website http://www.afa.net/kraft05.asp entitled “Kraft Says It Proudly Supports The Gay Games,” Rev. Wildmon quotes Marc Firestone, Executive Vice President, General Counsel and Corporate Secretary of Kraft Foods Inc.:

Diversity is more than a word many people like to say.  At Kraft we truly respect all kinds of differences.  And diversity is not a selective concept.  By definition, it's nothing if not inclusive.  We respect diversity of ethnicity, gender, experience, background, personal style and yes, sexual orientation and gender identity.  Recognizing, respecting and valuing these differences helps us be a more successful business and a workplace where all employees can realize their full potential. 

Wildmon observes: “The Gay Games can't get a much stronger commitment than that given by Kraft.”

For his recommended action, Wildmon provides a link labeled “Click here to send your letter to Kraft.” The letter expresses disappointment with Kraft’s sponsorship of the Gay Games and asks that Kraft withdraw its sponsorship.  It also warns Kraft that if they do not withdraw sponsorship of the Gay Games, and if AFA calls for a boycott of Kraft, the sender will participate.

Now I, obviously, as a Kraft stockholder, would not like to see a boycott of Kraft. Furthermore, my idea of how to influence U.S. corporations to come around on such thorny issues was influenced heavily by the philosophy of John Birch Society founder, Robert Welch, who did not believe in the use of corporate boycotts. Welch repeated this position many times, including this statement he wrote in 1965: “To us the use of boycott, or of any form of economic coercion, to enforce strictly ideological views, does not seem consistent with sound Americanist principles.” One reason Welch objected to the use of the economic boycott was that innocent parties, such as employees and (ahem) stockholders were punished for the decisions of a few corporate executives.

But I certainly wouldn’t object if lots of people made lots of noise concerning this issue! If you are a Kraft stockholder, you will have an opportunity, as did I, to vote “For” dissociation from these games on question 4 of your ballot.

And the rest of middle America has an opportunity to contact Kraft executives to tell them exactly what they think about Kraft’s sponsorship of the “Gay Games.” You can contact Kraft’s CEO as follows:

Mr. Roger Deromedi, CEO
Kraft Foods
3 Lakes Dr.
Northfield, IL  60093
Phone: 847-646-2000 Fax: 847-646-6005
E-Mail: rderomedi23@kraft.com

[Extremely Extreme Extremist]

But...but...what about my individually-wrapped cheese slices? The store brands are mostly oil and water.

[Captainpaintball]

I'd hate to see what they do with the string cheese...

[JRios1968]

Well, I do like cheese...

[jazusamo]

Does Kraft make Cheese Whiz?

[de Buillion]

"And the rest of middle America has an opportunity to contact Kraft executives to tell them exactly what they think about Kraft’s sponsorship of the “Gay Games.” You can contact Kraft’s CEO as follows: "

No thanks, I'll just let them know how I feel at my grocery store. (Kraft is a MAJOR food manufacturer. Used to be owned by Phillip Morris.)

[Slings and Arrows]

Kraft and the "Gay Games"

I'd hate to see the pole vault.

[martin_fierro]

[Frenetic]

Is one of the events "hide the salami" or "the hamster assatrod"?

[crghill]

Boycotts do not work, but MORALLY RESPONSIBLE INVESTING does. If enough shareholders sold the stock in protest, it would be an unintended cost of the Gay Games sponsorship. This would get the board to reverse course! Sell the stock. Sell your mutual funds that hold the stock.

[NavySon]

Why is it that when some "minority" athletes, contestants, or whatever they are, aren't good enough to be in the regular event, they think they need to start their own?

[davidosborne]

I just called the corporate line, and simply asked if this was true, and the attendant "proudly" confirmed it.

Passing it on to anyone interested, I am trying to "organize" a boycott, but I think each person should decide for themsleves if they want their money to support this type of event.

Passing it on....

Mr. Roger Deromedi, CEO
Kraft Foods
3 Lakes Dr.
Northfield, IL 60093
Phone: 847-646-2000 Fax: 847-646-6005
E-Mail: rderomedi23@kraft.com

David

[NavySon]

It must be hard to throw a javelin with a limp wrist.

Flashback to Revenge of the Nerds.

[Ol' Sox]

C'mon now... What do you expect from a company that has a mascot named the "Dairy Fairy"?

[E.G.C.]

BTTT

[gun_supporter]

My parents own stock in Kraft. I told them about this article. They read it. They sold.

[AuH2ORepublican]

"what about my individually-wrapped cheese slices? The store brands are mostly oil and water."

---

Next time you see a package of Kraft's individually wrapped singles, read it carefully. Notice that they don't call it "cheese." That's because they can't since it's not real cheese. The FDA makes them call it "cheese product" or "cheese food." Kraft does sell slices of real cheese, but it's not individually wrapped; the slices are pre-cut and placed in a similar outside wrapper as the Kraft singles, but you need to separate them with your fingers without the benefit of the individual plastic wrapper.

[Grampa Dave]

"Boycotts do not work, but MORALLY RESPONSIBLE INVESTING does. If enough shareholders sold the stock in protest, it would be an unintended cost of the Gay Games sponsorship. This would get the board to reverse course! Sell the stock. Sell your mutual funds that hold the stock."

This is an excellent suggestion the mutual funds. Freepers who are interested can go to the link below and enter KFT in the search area. Then they can see if their mutual fund owns KFT.

http://moneycentral.msn.com/investor/invsub/ownership/ownership.asp?Symbol=kft

[Brytani]

Processed cheese stuff