Thursday, November 19, 2009

Corperate Crisis - The Belgium Incident

On June 13, 1999, the Coca-Cola Company recalled over 15 million containers of the soft drink after the Belgian Health Ministry announced a ban on Coca-Cola's drinks, which were suspected of making over 100 school children ill in the preceding six days. This problem shook the entire country of Belgium not only because there was suspect that the product made school children sick, but especially because the Coca-Cola Company was a trusted corporation. As a result, The Coca-Cola Company, in cooperation with the Belgian Health Ministry, recalled its products from Belgian stores.

Coca-Cola made a great effort to eradicate the problems in production that caused this crisis. The company quickly identified the two specific production and distribution problems that were linked to the sickness in the school children. The two problems that were identified by Coca-Cola were:


(1) ‘‘Off-quality’’ carbon dioxide that affected the taste and odor of some bottled drinks.

(2) An offensive odor on the outside of some canned drinks. The odor appeared to intensify when the cans were stored in vending-machines.


After the investigation of the recalled product and due to Coca-Cola's commitment to its consumers, "on 22 June 1999, the Belgian Health Ministry lifted its ban on CCC trade-mark products (except for those products sold in vending-machines, pending further review) on the condition that CCC and CCE use fresh basic materials, conduct a thorough cleansing of the plants, enhance current safety measures, as well as take other steps." Ivester followed up this progress with a company statement:


"We respect the Ministry’s obligation to the people in these times of deep sensitivity to public health issues. Nothing is more important than protecting the public’s health, and we have worked very closely and intensively with the Ministry, providing significant amounts of information confirming complete confidence in the safety of our products and packages. He announced: We let down the people of Belgium, and we’re sorry for that, but now we’re committed to do what it takes to earn their complete trust again"


The only thing that I was taken back on was the fact that it took Coca-Cola one full week to make their initial public statement. During the company's silence it is no doubt that rumors had run rampant about the quality and safety of Coca-Cola beverages; not only in Belgium, but also around the world. The Coca-Cola chairman and CEO, Doug Ivester, responded with the company's first public statements addressing the production and distribution problems and offering the company's apology to those affected and the people of Belgium.

"The Coca-Cola Company’s highest priority is the quality of our products. For 113 years our success has been based on the trust that consumers have in that quality. That trust is

sacred to us. I want to reassure our consumers, customers, and government officials in Europe that The Coca-Cola Company is taking all necessary steps to ensure that all our products meet the highest quality standards. Nothing less is acceptable to us and we will not rest until we ensure that this job is complete. We deeply regret any problems encountered by our European consumers in the past few days"

If I were in charge of Coca-Cola's PR department I would make sure that the company was always on its toes just in case an event like this was to occur. That way, if a crisis like this was occur the public statement would be made without delay. It is very important that a company takes the blame for any situation and/or crisis it is responsible for and to address the issue quickly. In Coca-Cola's case, the PR team was slow to respond to this issue; which may have played against their favor. The cooperation and efforts that the Coca Cola company made after the fact to rebuild their image and to show dedication the people of Belgium and the world were sincere, which is why the Belgian Health Ministry re-instituted Coca-Cola into the country again.

source: http://www.fh-fulda.de/fileadmin/Fachbereich_SW/Downloads/Profs/Wolf/Studies/belgians/belgians_crisis_management.pdf



No comments:

Post a Comment