It's nearly sunset when Gilles Ouellette, an executive at Bank of Montreal, gathers with colleagues at Toronto's Buddies in Bad Times Theatre.
The bank is a sponsor of the evening's event, which is raising money for a summer camp for the children of gay parents. In their serious business suits, Ouellette's party might seem a tad out of place at the country's premier gay entertainment hub, but they're as engaged as anyone.
On stage, comic Jim J. Bullock is hosting a mock game show, asking contestants to complete his sentences. “The new Captain Kirk makes me want to set my phaser on …” he says, as Ouellette chuckles. The raunchy comedy sketches go late into this May evening, keeping the bank execs laughing through to curtain close.
Welcome to the world of rainbow marketing, a trend that on the surface resembles pink-ribbon marketing, which brands products in support of breast-cancer research. In this case, using the rainbow symbol is more about tapping into a lucrative market – one estimate puts its annual buying power at $100-billion – than supporting a cause.
During this week's Pride festivities in Toronto, mainstream companies were proudly flying the rainbow colours, ymbol of the GLBT (gay, lesbian, bisexual and trans-gendered) community, in billboards and ads. Heavy hitters included TD Canada Trust, retailers Winners and HomeSense, and liquor maker Corby Distilleries. Even an Ontario winery is displaying the rainbow, on a new wine it calls Chardonngay ($1 from every $19.95 bottle sold goes to AIDS research).
“Gay people have better than average taste in wine and they have a lot of disposable income to spend on wines,” says Daniel Lenko, owner of his eponymous winery. “It might look a little bit campy or a little tongue in cheek. But a lot of people are waking up and saying, ‘Hey, these people have been ignored as a potential sale. Let's get our heads out of the sand and do something about it.'”The efforts can pay off handsomely. According to the Canadian Gay & Lesbian Chamber of Commerce, the GBLT demographic is estimated to have the collective buying power of about $100-billion a year, just under 10 per cent of that of the total population (the chamber estimates they make up 7 per cent of the population, though official estimates are lower). The organization says these consumers have a higher discretionary income than others, partly because they often don't have children to support. In the United States, 35 per cent of them enjoy a household income of more than $100,000 (U.S.).
Catering to the gay community isn't without risk, however. Non-gay customers may be offended by an overtly gay pitch, while gay consumers don't necessarily appreciate the patronizing symbolism of rainbow flags.
“I call it dipping a toe in the water,” says Shaun Proulx, a host on Toronto radio station PROUD FM and a gay activist. “The companies do something only at Pride, for the most part.”
He finds the concept of a gay-identified wine a cliché, although he gives the winery credit for trying to draw gay customers. Getting businesses to see past stereotypes takes time, he adds. “It is a very slow thing and it is going in the right direction. But like anything in the gay movement, it's a long process sometimes.”
Rick White, vice-president of marketing at Bank of Nova Scotia, recognizes the pitfalls of navigating the rainbow waters.
“Yes, you will offend some people, but generally I don't think anybody will complain about that,” White says. “Frankly, as an advertiser, I think it would be great if we could do a lot more. In our advertising we depict a wide range of diversity. I haven't done a commercial yet with two guys or two gay women. That, I think, will come sooner rather than later.
