Celebrity drug scandals can damage sponsors

Two celebrities involved in a drug scandal on Tuesday will bring huge losses to the companies that invited them to be brand ambassadors, industry analysts predicted.

Taiwan actor Kai Ko has reportedly signed contracts with 19 brands for his appearances in TV commercials, with two-thirds of the companies in the Fortune Top 500, while Jaycee Chan, the son of actor Jackie Chan, has been the brand ambassador for six brands.

Nivea, which has endorsed Ko for its latest skin care products for men, reportedly issued a statement on its micro blog saying it was shocked and sad to hear about Ko's drug use and expected him to correct his behavior and take responsibility. Nivea, a brand under the German company Beiersdorf, couldn't be reached for comment on Tuesday. Ko's image is still on Nivea's website.