Final Thoughts

Numerous companies in the food and drink industry have experienced crisis situations. Snow Brand, Maple Leaf and KFC and only a few. How the crisis affects the company and whether it is able to recover from the situation and regain public trust, is entirely dependent on how the company responds to the crisis situation.

As demonstrated by Snow Brand’s case, poor communications eternally and externally as well as lack of communication with the public can lead to a company’s downfall.
On the other hand, Maple Leaf Foods responded very well to their crisis situation. Although the crisis resulted in illness and death, the company expressed its sympathies and did everything possible to regain public trust. The company went above and beyond its duty and for this was successful in its crisis recovery.

KFC’s crisis situation is still unresolved but is different from both other situations because it strongly believes it is not responsible. Whether or not the company will win the battle, I believe its brand and business will remain tarnished for years to come.

It is vitally important for companies and businesses to react and respond to crisis situations in an appropriate and timely manner. Ronald Smith, in our text book, Strategic Planning for Public Relations, outlines six strategic principles for crisis management:

Principle of Existing Relations
o During a crisis, communicate with employees, volunteers, stockholders, donors, community leaders, customers, government and professional authorities and other constituent groups, as well as with colleagues.

Principle of Media-as-Ally
o Treat the news media as allies that provide opportunities to communicate with key publics.

Principle of Reputational Priorities
o Your top priority after safety issues is to your own reputation.

Principle of Quick Response
o Be accessible to your publics as quickly as possible.

Principle of Full Disclosure
o The organisation should provide as much information as possible.

Principle of Once Voice
o A single, trained spokesperson should represent the organisation (2005, p. 24).

These six principles, used as a guideline, can help organisations and companies properly respond to crisis scenarios, which can lead to a successful recovery.

Hope you enjoyed my blog!

Best wishes and happy blogging,

Ash

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KFC Crisis

KFC (Kentucky Fried Chicken) was yet another company faced with a horrid crisis situation only a few months ago. However, this situation was different from the Maple Leaf crisis, in that KFC is denying the alleged accusations.

KFC is being sued by a family who claims, their 11 year old daughter received salmonella poisoning from eating a KFC chicken twister in 2005. The girl is now in a wheelchair and the family is suing KFC for the damages.

Although the store where the poisoning is said to have occurred, rated very poorly in food preparation and handling audits and cross-contamination of food was present in the store, KFC is still strong in stating that it is not at fault.

While the company has expressed its sympathies for the girl and her family, they have posted various statements on their website reinforcing their position as not responsible for the girl’s illness. Information relating to their defense, as demonstrated in court, was also displayed on their website along with a statement from the general manager.

A video on the health and hygiene of KFC store locations was also posted on their website along with a video from KFC general manager, updating the public on the findings discovered in court, including inconsistencies in the girl’s statements made to the food authorities.

New information was released on the KFC website a couple of days later stating that no twisters were purchased at the time the girl and her family stated. Also, information regarding the temperature in which the chicken is cooked was displayed, which explained the impossibility of Salmonella being able to survive. However, the case will be held over until 30 November 2009.

KFC strongly believes it is not responsible for the girl’s illness and is defending the company, with valid information in court, but even if the company wins the case it will always be associated with possible salmonella poisoning and will likely lose a large number of customers.

I know, I personally, will think twice before ever eating at KFC again, will you?


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Crisis Management

Maple Leaf Foods initially reacted to the crisis situation very efficiently and appropriately and continued to do so for many months later. During a crisis it is essential to respond to your public(s) and quickly as possible, provide them with as much information as possible, tell the truth and appoint a spokesperson for the company. Maple Leaf Foods did all of this and more in responding to the situation.

The company website was updated daily with news releases, media advisories and additional information regarding the crisis. Information on the website included; dates the president and CEO would speak to the media, the source of the outbreak, a product recall timeline and the status of the plant in which the outbreak occurred, including the delays of the plant reopening, the plant resuming production, start up protocols for the plant and new food and safety protocols.

President and CEO, Michael McCain, spoke to the media approximately five times within the first six weeks of the crisis and also created a video message apologizing for the situation and the impact it has had on numerous people.




A second video was created outlining the cleaning procedures in the plant and the testing that had been completed. Michael McCain states that they have determined the cause of the problem and have corrected it.




A third video was made that stated Maple Leaf’s action plan on food safety. McCain states that all products now available in stores meet or exceed the Canadian Food Inspection Agency and Health Canada requirements. He also explains that they are making major changes to become a world leader in food safety.




Maple Leaf Foods was highly visible since the beginning of the crisis through press conferences, television announcements, website updates, video messages and newspaper advertisements. Although the company could not change the outcome of the crisis, they apologized for the situation, demonstrated their concern for immediate response and action, and updated, tested and made major changes in safety procedures and protocols in order to prevent a similar crisis from occurring in the future. The company also promised never to forget the listeriosis outbreak.


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Maple Leaf Foods

Another company that was hit hard with a serious crisis in the food and drink industry was Maple Leaf Foods.



On August 23, 2008, Maple Leaf Foods was faced with a horrible crisis when The Public Health Agency of Canada discovered that a listeria outbreak was directly connected to their meat products. The outbreak caused numerous deaths and illnesses among customers in provinces across Canada.

Immediately following the discovery, Maple Leaf Foods issued a news advisory on their website, stating that company president and CEO, Michael McCain, would be addressing the media regarding the issue, the next day, August 24, 2008. The company also announced a list of product recalls, which were updated frequently and posted on various public health websites. Officials from the Public Health Agency and the Canadian Food Inspection Agency and health Canada announced a technical briefing for the media to be held the following day as well. The Public Health Agency of Canada also issued an immediate new release on their website confirming the link between the listeria outbreak and Maple Leaf Foods.

All news stations across Canada followed the story and broadcasted updates regularly including; the current situation and number of listeria outbreaks, illnesses and deaths to date, product recalls and steps Maple Leaf were taking to control the crisis as well as their reactions and responses to the situation.





A news release was also posted on Maple Leaf Food’s website which recapped Michael McCain’s response to the outbreak during a press conference held that evening. In the news release, McCain states his sincerest sympathies for the illnesses, loss of life and tragedy of the situation. He continues to provide further information regarding product recalls and apologizes for failing to provide high quality, safe food. McCain states that their efforts will be guided by putting the customer first and that all measures will be taken to ensure the effective retrieval of affected products.

The Toronto plant, where the outbreak was said to have developed from, was quickly shut down. The company continued to update the public on the situation on a day-to-day basis and announced and posted expanded recalls of products. The company website contained updated information as well as media advisories, news releases, precautionary measures as well as statements on notification and product recall timeline.

From a communications and Public Relations standpoint, how do you think Maple Leaf initially reacted to the crisis situation?

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Importance of Crisis Management Plans!!!

Although the president said the company had a crisis management manual, it was not functionally designed to be helpful in this particular situation. Snow Brand should have taken more time to develop a crisis management plan that would be useful to use in situations such as this one. The purpose of a plan is to be prepared in case a crisis occurs. The company should have outlined steps and procedures to follow such as; which office is in charge during a crisis, who the appointed decision maker will be and who will be the spokesperson to speak to the media.

It would have also been important for Snow Brand to have had internal communications between employees, managers, executives and the president. It is not only important to develop a crisis plan but a company should also train employees on the procedures involved in the company’s crisis plan. This will limit the amount of confusion and reduce stress and panic in real life scenarios.

Snow Brand should have been better prepared, which probably could have prevented the increasing number of people poisoned. The company should have responded more quickly and efficiently to the situation. If they had done so, Snow Brand could have recovered from this crisis but instead, it will always be remembered “as the worst case of food poisoning in Japanese history” (Snow Brand 13).

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Disorganization = Downfall

Snow Brand was very disorganized in its attempt to deal with the situation at hand, which was another factor that contributed to its downfall. Representatives were too confident and eager to maintain their successful reputation that they released false and inaccurate information to the media on numerous occasions. The company posted the manufacture date of possible contaminated products in newspapers but later discovered that the date was incorrect.

The president also stated that the problem was only at the Osaka plant and insured that the rest of their products and plants were not affected. However, it was later discovered that one of the food poisoning sources came from a different plant.

These mistakes made by Snow Brand created more work for the company. Additional press conferences had to be scheduled to explain their false release of information and to update the public on the current situation. These errors jeopardized the public’s confidence and trust in the company and their products.

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Lack of External Communications as well...

Not only were internal communications within the company dysfunctional, but external communications were as well. Snow Brand maintained very poor communications with the media and the public throughout the crisis. The company did not respond in a timely manner to the public reports of the food poisoning on June 27. It rejected the suggestion by Osaka City Hall employees, on June 28, to conduct a recall and immediately inform the public about the poisoning. It was almost 58 hours after the initial report that the company executives finally decided to make a public announcement and recall their products. Due to Snow Brand’s lack of communication with the public, the media looked for alternative sources for information. Some of the information they received was valuable and some was false. The false information received by the media added to the bad reputation of the company.

Snow Brand was very disorganized in its attempt to deal with the situation at hand. Representatives were too confident and eager to maintain their successful reputation that they released false or inaccurate information to the media on numerous occasions. The company posted the manufacture date of possible contaminated products in newspapers but later discovered that the date was incorrect. The president also stated that the problem was only at the Osaka plant and insured that the rest of their products and plants were not affected. However, it was later discovered that one of the food poisoning sources came from a different plant. These mistakes made by Snow Brand created more work for the company. Additional press conferences had to be scheduled to explain their false release of information and to update the public on the current situation. These errors jeopardized the public’s confidence and trust in the company.

Ultimately, Snow Brand’s lack of internal and external communications and negligence of health and safety regulations led to its downfall.


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