Diana Fund Seeks to Build New Brand "The Times" June 21, 2000
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Diana fund seeks to build new brand
IT has been a tricky few days for the Diana, Princess of Wales Memorial
Fund. A judge in California has just thrown out a two-year court action
in which the fund was seeking to block a US company, Franklin Mint,
from making unauthorised Diana dolls and other memorabilia.
For the fund, which today publishes its 1999 annual review, this was
seriously bad news. It has spent £1.7 million fighting the case,
opening itself to accusations that it has achieved little but enrich
the lawyers. The fund naturally argues otherwise, saying that without
fighting Franklin Mint in the courts, every man and his dog would be
churning out Diana merchandise.
Andrew Purkis, the fund's chief executive, must now decide what to do
next. "The cost of appealing is very limited," he says. "I think it
would be inconceivable just to walk away as if we were acknowledging
everything the judge had said was correct."
More encouragingly, the fund is close to signing a deal with Franklin
Mint's main competitor, Bradford Exchange. This should mean that
royalties from the sale of Diana memorabilia - chiefly plates in this
case - will be shared with the fund. America is expected to generate
about half of all Diana-linked sales.
The latest accounts show that the fund has swelled to £110 million in
just three years, with £80 million of the total linked in some way to
the sale of products. Royalties from the Elton John single Candle in
the Wind brought in more than £33 million and a Diana tribute CD raised
about £15 million. Income and donations totalling nearly £15.5 million
flowed into the fund last year. More than half the revenues came from
licensing Diana memorabilia and other trading activities.
The fund has pledged £25 million in grants to 113 projects in the UK
and 54 overseas. More than 45 per cent of UK grants in 1999 went to
black-led charities or projects aimed at ethnic minorities. Money
allocated overseas went on landmine clearance and rebuilding
communities divided by war. Management and administration costs came to
£298,000 in 1999.
Purkis, former public affairs secretary to the Archbishop of
Canterbury, is sensitive to charges that the fund has been slow off the
mark. "We have thought it right to get on with a huge grant-giving
programme," he says. "Let it not be said that we are sitting on the
people's money."
Diana merchandise might grow to include mother and babycare items,
giftware and stationery, as well as floral arrangements. Purkis
says: "The memorabilia phase is fading out. The question is: can we
build, over a period of time, a new brand that is not about
perpetuating the icon but is about continuing her work? What we are
trying to do is generate a small range of high quality products branded
with the Diana signature."
Even with no new money coming in, the fund anticipates distributing £7
million a year for the next 15 to 20 years. With income from donations
and trading activities, this could continue indefinitely.
Fans of the late Princess might consider that a fitting legacy.
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