Bono Backs "Red" Brand With Bold Anti-AIDS Goal

Today at a news conference at the World Economic Forum in Davos, Switzerland, rock star Bono joined American Express and three leading fashion companies to launch Product Red, a branding and fundraising plan to increase global HIV/AIDS funding.

The Amex "Red Card," whose reverse side states "This card is designed to eliminate HIV in Africa," will draw on the spending power of "conscience consumers" in wealthy Western countries. One percent of money that customers spend on the card will be donated to the Global Fund to Fight AIDS, TB and Malaria. Launch partners Gap, Giorgio Armani and Converse, a Nike subsidiary, will also contribute a portion of profits from selected Red-branded goods, including T-shirts, sunglasses and sneakers made from African mudcloth, to the fund.

"We sought out iconic companies who make iconic products," Product Red CEO Bobby Shriver said.

The Red campaign will rollout in different markets at different stages, initially targeting Britain, where Amex anticipates a market of some 4 million cardholders by 2009.

The partners stressed that the campaign will only succeed and be sustainable if it generates money for the businesses taking part. "It's conscientious commerce, and it's our hope it will both reward our shareholders and the global community," said John Hayes, chief marketing officer at American Express.

The companies did not say how much money the campaign could raise, suggesting it will be dependent on consumer response and the speed with which the brand is expanded to other countries and corporations. They were also unable to say what proportion of sales of Red-branded goods would go to the Global Fund, saying it depended on sales volume and whether products were purchased directly or through a retailer.

Back to other news for January 26, 2006