Blake Lively and Justin Baldoni’s feud ruined a $100 million brand. It’s a crucial lesson for every founder

The Blake Lively-Justin Baldoni legal fight is primarily a Hollywood “he said, she said” story, but as a founder, it should be read as a cautionary tale about what can happen to your company if you lose public favor. Before their feud with Baldoni, Blake Lively and her husband, Ryan Reynolds, were well-liked A-listers thought of as “down-to-earth nice.” They were also hot brand ambassadors. Ryan built and sold Aviation Gin to Diageo for $610 million in 2020 and Mint Mobile to T-Mobile for $1.35 billion in 2023. Blake Brown beauty was slated to be Target’s biggest hair product launch ever in 2024. But when accusations started flying, the internet went to work. Videos and text messages were discussed and dissected on social media, and the next thing you know, Blake and Ryan were disowned by fans who had adored them just days before. The fallout was brutal. Rachel Strugatz at Puck reported that sales for Blake Brown plunged over 87 percent, and the brand became valued at $15 million instead of the forecasted $100 million. Aviation Gin and Mint Mobile saw weakened sales and pulled campaigns. Lively’s legal team claimed reputational damages of up to $300 million. None of the products, the promotions, or the packaging had changed. The only thing that changed was what was said on social platforms. And it’s not just a celebrity thing. One Instagram post from Dylan Mulvaney wiped out Bud Light’s two-decade run as America’s No. 1 beer. Sales dropped 25 to 30 percent and $27 billion in market value was lost. Three years later, the brand still hasn’t recovered. Edelman’s 2024 Trust Barometer says that 71 percent of global consumers divide brands into “buy” or “boycott” categories. They either love you or hate you (and it can change in an hour). Reputation used to be something you could manage with a Rolodex of journalists and a stash of tasteful gifts. Now it’s a load-bearing wall in a building that a random 22-year-old named Brayden can take a sledgehammer to between his secon