MrBeast launching a new product amid controversy may be a good PR move, marketing experts say. But it's risky.

• MrBeast has launched a new lunch product with fellow YouTubers KSI and Logan Paul.

• The news comes while the top creator is embroiled in controversy.

• Experts say the move could be smart, but it's also risky.

Top YouTuber MrBeast is being criticized, but he seems to be focusing on a new product launch instead of making statements.

Jimmy "MrBeast" Donaldson is the biggest creator on YouTube, with 316 million subscribers.

He has banded together with two other YouTubers, Logan Paul and KSI, to launch Lunchly.

It is marketed as a competitor to Kraft Heinz's Lunchables and will include a bottle of Paul and KSI's drink Prime, a bar of Donaldson's Feastables chocolate, and either "Fiesta Nachos," "The Pizza," or "Turkey Stack 'Ems."

The drop surprised many who have been following Donaldson in the news lately because he's found himself embroiled in a string of controversies.

This week, Donaldson was hit with a class-action lawsuit filed by several contestants on his upcoming Amazon show '"Beast Games," who variously allege sexual harassment and dangerous conditions on set. He hasn't publicly addressed the suit. Donaldson's reps and Amazon did not respond to requests for comment from Business Insider.

Launching a new product without publicly addressing recent allegations against him may feel like a PR misstep, but marketing and crisis management experts told Business Insider that Donaldson might be focusing on the people who support him no matter what.

"I think we are definitely living in times where celebrities and influencers are first attempting to try their luck and say nothing," Katya Varbanova, a marketing consultant and the CEO of Viral Marketing Stars, told BI. "Because a lot of PR crises do pass over."

Donaldson's troubles

Donaldson gets his fair share of criticism as someone who is so famous on the internet. But he has largely shrugged off bad press over the years.

However, public opinion started to shift as controversy led him to cut professional ties with his childhood friend Ava Tyson earlier this year after she was accused of engaging in inappropriate conversations with young fans. Tyson apologized and said she would halt working with Donaldson and the MrBeast team.

"I would like to apologize for any of my past behavior or comments if it hurt or offended anyone," she wrote on X on July 23, though didn't give specifics of what the behavior or comments were.

In response, Donaldson said he was "disgusted" and was conducting an investigation.

After the Tyson controversy, Donaldson's reputation took another hit when The New York Times published a report alleging injuries and hospitalizations, a lack of food and water, and limited access to medicine on the "Beast Games" set.

At the time, a spokesperson blamed the CrowdStrike IT outage, among other factors, and said Donaldson had "taken steps to ensure that we learn from this experience."

Donaldson also hired a top law firm to conduct an investigation into working conditions. But for the most part, he stayed quiet.

On social media, some have called for Donaldson to address the allegations more directly.

Photos and videos have also been circulating of Donaldson's displays for his brand Feastables being vandalized in grocery stores. Others have been warring with Paul on X about the nutritional value of Lunchly packs.

Making the most of bad press

However, the impact on Donaldson's brand of the recent controversies may not be as bad as it seems on social media.

Zoya Perlova, the head of social-media marketing at the tech company Dyninno Group, told BI that Donaldson could actually be benefiting from the negative attention, which can be turned into viewership, sales, and income.

Perlova said Donaldson is riding on his reputation of being charitable, which his fans won't forget in a hurry.

"Generally, launching a new product amid controversy can be a very good strategic move since it shows resilience and shifts the overall predominant narrative," Perlova said. "It gives an opportunity to focus on different things."

In Donaldson's case, his launch shows he is "future-focused and committed to growth," she added.

Varbanova said it's hard to know how many of Donaldson's 300 million YouTube subscribers are even following the negative news.

Donaldson's last three YouTube videos, which were posted since he found himself in hot water, have all amassed a hundred million views or more, and his subscriber count continues to climb.

Pam Lyddon, the CEO of the PR and broadcast agency Bright Star Digital, told BI that while the Lunchly launch could be a smart refocus, it's also risky. She warned it could look "like a distraction from serious allegations."

"Addressing these issues directly would potentially help safeguard his reputation long-term," Lyddon said. "He has a loyal fan base, and he needs to respect them."

Natalie Yorke, a publicist and content creator, agreed that the timing of the Lunchly release could be seen as either bold or tone-deaf.

"Ultimately, MrBeast's handling of these allegations and legal challenges in the coming weeks will be crucial in determining the long-term impact on his reputation and brand," she said.

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