Virgin Drinks USA, MangoSoft Put Mullen in Limbo

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Campaigns for a pair of Mullen clients, Virgin Drinks USA and MangoSoft, have stalled. The former has cancelled its Fusion Water products and there is no creative on tap for the latter.

Virgin Drinks has quashed the launch of its line of vitamin- and mineral-enhanced Fusion Water due to a lack of funding.

Officials at Mullen in Wenham, Mass., have denied any employee reductions, but sources said “minor staffing cuts” have quietly been made in recent weeks as work flow has slowed. The agency employs more than 500 nationwide.

Mullen/LHC, the Winston-Salem, N.C., affiliate of Mullen, added Virgin Drinks USA last year.

The shop created product packaging, graphics and booth presentations for Fusion Water’s introduction in December at the International Beverage Show in New Orleans. A multimedia advertising push for the product, slated to roll out in coming months, is in limbo.

The agency is going forward with plans for outdoor and radio ads in the hope that Virgin Drinks USA employees can find new sources of funding to launch the product, said Mullen CEO Joe Grimaldi.

“Our intent is to hang in there and launch [the product] with them,” Grimaldi said.

“We need to raise the capital, but we’re optimistic because [Fusion] has great potential,” said Bob O’Brien, CEO of Virgin Drinks USA. The product bowed Feb. 13 and is distributed in 41 markets across the country.

Mullen has yet to unveil work for Internet software supplier MangoSoft. Its Wenham office picked up the $20-25 million print, Web and direct marketing account last May.

Mullen had begun creative development for MangoSoft, but the firm has run into funding problems that sources said are likely to impact the nature and release date of advertising. MangoSoft spokesman Tom Ricci said ads are forthcoming.