Internal Communications...Or Lack There Of...

Snow Brand’s lack of internal communications was one of the reasons for its downfall.

Internal communication between employees, managers, executives, directors and the president were basically nonexistent. During the crisis “information channels were extremely complicated within the company” (Snow Brand 13). There was chaos between all of the plants because they were unsure which one was in charge of calling the shots. As well, the poisoning and inspection of the Osaka plant was withheld from executives and directors at the stockholder meeting. They were not informed of the situation until the following day.

The president of the company remained outside the communication loop for the most critical part of the crisis. Ishikawa was not present for the decision making process and was not updated by any of the executives. He was not informed of the executive decision, on June 29, to recall products in Western Japan, until one hour later. Similarly, the president was unaware of the contamination in the valves of the milk products line discovered during the equipment inspection two days earlier. Ishikawa heard this information for the first time from the Osaka plant manager during the second press conference on July 1. In complete shock, the president revealed to the public that he was displeased because this important information did not reach him. He also admitted to the public that the company was in complete chaos and resigned from his position on July 5.

Internal communications, or lack there of, were very disorganized and chaotic, which, in combination with other factors (which will be discussed later), lead to the downfall of Snow Brand.

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Snow Brand

The first case I would like to discuss in the food and drink industry that was faced with a huge crisis scenario was Snow Brand.

Snow Brand was Japan’s top milk product company that was not at all prepared for the crisis it faced on June 27, 2000. Contaminated milk products produced in a few of their plants poisoned numerous customers. The number of people infected drastically increased as each day passed, without proper response or action on behalf of the company. Failure to respond to the situation productively and efficiently greatly impacted the overall image and validity of the company.

Here is a case study on Snow Brand titled "Why was the Snow Polluted - A blind spot for the Japanese top milk product company, Snow Brand."


What led to the downfall of Snow Brand?

If you were working for Snow Brand, what would you have done differently to save the image of the company and regain the trust of your consumers?

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What is Crisis Communication?

A crisis is a situation or incident that has occurred within a company, business or organization that may cause potential harm and damage reputation. When faced with a crisis scenario it is extremely important for company representatives to respond appropriately and in a timely manner to prevent further impact on the company and its publics.

All organizations, businesses and companies are at risk of a crisis situation. For this reason, it is very important to be prepared! (Developing a crisis management plan will be discussed later). Being prepared may help eliminate stress and chaos during a real life crisis situation and will allow the company to plan potential reactions and responses to deliver to their publics and the media, ahead of time. Most importantly, companies must react to the situation effectively in order to maintain their brand image and the trust of their consumers.

The food and drink industry has been hit hard with numerous product recalls and incidents that have lead to crisis scenarios. Are companies overlooking product safety standards and safety regulations? Or are they just experiencing a stroke of bad luck?

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Welcome to my blog on Crisis Communication

In my blog I am going to be discussing Crisis Communication in the food and drink industry.

I will talk about specific cases such as: Snow Brand Milk Case, Value Plus Bread incident, Wendy's Restaurant Finger Case, KFC Salmonella Poisoning, Maple Leaf Listeria Case, etc and whether they are fact or fiction. As well, I will be looking for input and thoughts on the outcome of each crisis and what should or should not have been done differently.

I will also discuss crisis communication plans and if there should be a universal template for every communication plan or if each company's plan should be different depending on the specific crisis. This topic will hopefully be up for debate.

I look forward to your responses throughout the upcoming months!!!

Happy Blogging,

Ash