Bono's Red initiative criticised over fundraising returns

by Alex Donohue, Brand Republic 08-Mar-07, 11:30

LONDON - Red, the Gap-, Apple- and Motorola-endorsed anti-Aids brand set up by U2 singer Bono, has been criticised for spending £50m on its set-up costs and raising only £9m for charity.

Red, which was set up last January, disputes the figures but said it did not have accurate data to hand. The Red brand was set up to help fight the spread of Aids globally by urging major FMCG brands to donate a proportion of sales from Red-branded products.

It has been criticised for its use of celebrity endorsements and questions have been asked as to whether Red is encouraging "the rise of philanthropic fashonistas" over traditional fundraising methods.

Rajesh Anadan, head of private sector partnerships at The Global Fund, an anti-Aids, tuberculosis and malaria charity, said Red had returned "as much as it could hope for" in the short time since it launched.

Bobby Shriver, chief executive officer of Red, has defended the organisation and the amount of cash it has raised.

"It's five times the amount given to the Global Fund by the private sector in four years. Because Red is explicitly not a charity, we encourage our partners to go about their business including their marketing. This sells the products; the products generate the $25m."

Since launching, Red has established partnerships with a number of global brands that it says will create a "sustainable flow of money" for the organisation.

Apple donates £5 to Red for every Red iPod Nano sold, Emporio Armani gives a 40% share of all its Red products, Gap donates 50% of its Product Red range to the organisation, and American Express launched a Red credit card, which donates 1% of every transaction to the foundation's work.

Brazilian supermodel Gisele also fronted an American Express Red ad campaign with a Maasai warrior last summer.