In June 1993, a man in Tacoma, Washington reported that he found a syringe in a Diet Pepsi’s can (Arnott, 1993). Within days, similar reports poured in from around the country: more than 50 complaints in 23 states (Toufexis and Park, 1993). In Beach City, Ohio, a woman said she found a sewing needle in a can of the soft drink (Toufexis and Park, 1993). And in Jacksonville, Florida, a man discovered a screw in his beverage container (Toufexis and Park, 1993). The story attracted the attention of the media (Toufexis and Park, 1993).
The media got involved intensively in the case and the story was all over the newspapers and the TV channels (Toufexis and Park, 1993). There were no reports of deaths or serious injuries, and no indication that any kind of poison had been found in the cans of soda (Miller and Glick, 1993). Still, FDA officials were compelled to take the alarm seriously (Miller and Glick, 1993). Since the first two cases involved cans from Alpac Corp. , a Pepsi bottler in Washington State, the FDA warned consumers in the Pacific Northwest, Alaska and Hawaii to pour their soda into a glass before drinking (Miller and Glick, 1993).
That way, FDA Commissioner David Kessler reasoned, no one would be harmed if more syringes were found (Miller and Glick, 1993). PepsiCo refuse to recall their Diet Pepsi product from store shelves (Wilcox, 2006). But to calm mounting fears, Pepsi President Craig Weatherup made appearances on television and gave interviews to radio stations and newspapers saying that Pepsi’s bottling line was secure (Wilcox, 2006). Pepsi even brought video cameras into their bottling factories to show the bottling process and the impossibility of inserting a foreign object into a can of Pepsi before it is sealed (Wilcox, 2006).
Even as cases mounted, many were being exposed as hoaxes (Toufexis and Park, 1993). By week’s end more than a dozen people had been arrested for making false reports (Toufexis and Park, 1993). Among them were a Colorado woman and South Carolina man who were captured on video by store security cameras putting objects in cans; others were admitting they lied (Toufexis and Park, 1993). The Pepsi syringe scare fizzled as fast as an open can of cola on a hot picnic table (Toufexis and Park, 1993). Communicating during the crisis.
Coombs (2007) defines a crisis is a sudden and unexpected event that threatens to disrupt an organization’s operation and poses both financial and reputational threat. As crisis is an unexpected event, it creates the need to respond to stakeholders through communication. Fearn-Banks (2010) defines crisis communication as “the dialog between the organization and its public prior to, during, and after the negative occurrence. The dialog details strategies and tactics are designed to minimize damage to the image of the organization”.
Moreover, crisis communication is concerned with the transferring of information to people, to help avoid or prevent a crisis, recover from a crisis, and maintain or enhance reputation (Fearn-Banks, 2010). Every crisis is different and management must adapt plan to meet their needs (Argenti, 2009). In the case of Pepsi Syringe Scare, adapt few plans to solve the crisis. Get control of the situation (Argenti, 2009) A crisis will strike your business, or your brand (Baker, 2007).
Everyone in the organization should be aware of what kinds of situations may constitute a crisis and should control and decide as soon as possible (Argenti, 2009). On that day the crisis occur, PepsiCo refused to recall their Diet Pepsi product from store shelves (Wilcox, 2006). CEO of Pepsi-Cola North America, Craig E. Weatherup was contacted by FDA Commissioner David Kessler and informs of the situation, and Craig E. Weatherup was opening lines of communication with FDA regulatory officials. Remarks of the FDA’s commissioner, David E.
Kessler, said that based on the disparate locations of Pepsi bottling plants, production dates that are months apart, and the variety of products and containers involved, “it is simply not logical to conclude that a nationwide tampering has occurred’’ (McCarthy and Deogun, 1993). Craig A. Weatherup also said that these cans were produced at very different plants, some six months ago, some six weeks ago, and some six days ago and there’s no correlation between the complaints, when these cans were produced or where they were produced (Snell, 1993).
This proves that both PepsiCo and the Food and Drug Administration (FDA) were confident that these reports were hoaxes. Gather as much information as possible (Argenti, 2009) The crisis team should understanding about the problem from the beginning, gather information, prepare crisis plan, and manage the crisis response (Health & Millar, 2004). The crisis response must also provide an explanation to key publics about what happened, and ultimately, provide a solution or a process for identifying a solution for the problem (Health & Millar, 2004). Alpac Corp. President Karl G.
Behnke said the syringes could have been placed in the cans before they arrived at Alpac, or after the cans were opened (Syringe in diet Pepsi cans prompt warning by FDA, 1993). PepsiCo knew that these medical implements could not have been put into cans at the regional bottler, Alpac Corp. and these reports could be false, but having the truth on PepsiCo side is not always enough (Horovitz and Bruce, 1993). PepsiCo still investigate the complaint with Alpac Corp to find out and understanding what is the problem and checks the product line while FDA tested the syringe for contamination (Windle, 1993).
Once the FDA tested and realizes that the needles and syringes involved in those initial cases were not found to be contaminated in any way (Reports of syringes found in Pepsi appear unrelated, 1993), FDA Commissioner David Kessler assurance that recall wasn’t necessary to calm the public (Greenberg, 1993). Set up a centralize crisis management center (Argenti, 2009) At the same time gathering information, the company should set up a centralized crisis management center (Argenti, 2009).
Crisis management center will serve as a platform for all communications during crisis (Argenti, 2009). A crisis management team may consist of individuals from senior management, technical operations, public affairs, public relations, consumer affairs, investor relations, and advertising (King, 2002). The CEO of Pepsi-Cola first action was to engage Pepsi-Cola’s four person crisis management team which made up of Craig Weatherup, CEO of Pepsi-Cola North America; Rebecca Madera, vice-president, public affair; and scientific and operations officials (Weinsten, 1993; Sonnenfeld, 1994).
They operate on the premise that tampering at any time probably would be obvious to a consumer and that the incidents were unrelated since the initial reports involved cans produced six months apart in different production sites (Weinsten, 1993). Communicate early and often (Argenti, 2009) The organization’s spokesperson needs to say whatever he or she can as soon as possible (Argenti, 2009).
Saffir and Tarrant (1996) outlined a plan of crisis communication that begins with selecting a crisis team and designating spokesperson to address the media. Employees, the media, and other important constituencies should know that the crisis center will issue update at regular intervals until further notice to calm fears and help to save corporate image and product line (Argenti, 2009).
The Pepsi-Cola’s media relations staff handled more than 2,000 calls from print, radio and television reporters while 64 employees answered tens of thousands of consumer calls (Crisis communications case studies, 1995). Pepsi-Cola updating employees with daily advisories to over 400 Pepsi facilities nationwide to prevented organizational chaos (Sonnefeld, 1994).
At the same time, Pepsi-Cola crisis management center decided Weatherup was more comfortable with the intricacies of canning operation compare with PepsiCo Inc. Chairman D. Wayne Calloway (Zinn, 1993). Therefore, Weatherup was explained how a syringe couldn’t possibly find its way into a can on such program as “Larry King Live” and “The MacNeil/Lehrer Newshour” from morning to evening (Greenberg, 1993). Understand the media’s mission in a crisis (Argenti, 2009) Members of the media tend to get first hand story because of extremely competitive environment (Argenti, 2009; Valenzuela, 2009).
They also will scope event to attract public attention (Livingstone, Lunt, and Miller, 2007). Members of media more accustomed to a crisis environment in their work (Agenti, 2009). Elkon (2007) also quotes that, in popular press, crisis was still emphasized to ensure support from a board audience accustomed on it. Argenti (2009) states that, members of media are looking for a good story with victims, villains, and visuals. Martin (2007) have similar opinion, which is member of media are choosing good story with emphasize the subjective, the personal, the emotional and the sensational.
Pepsi Syringe Scare had all of these sensational elements (Argenti, 2009). Pepsi-Cola became the victim of widespread allegations that its cans had been found to contain syringes (Richard, 1999). Pepsi CEO Craig Weatherup recognize the impact that visual would reassuring the tempering was not happening in Pepsi plants (Argenti, 2009). Thus, video news releases (VNR) featuring company executives and video footage demonstrating the canning process were distributed by satellite across the country, and Pepsi CEO Craig Weatherup appeared on every major network news program to declare the company was “99.99 percent certain” the alleged tampering was not happening in Pepsi plants (Crisis communications case studies, 1995).
This all are the example of Pepsi using media to help it beat a crisis (Argenti, 2009). Remember the business must continue (Argenti, 2009) During organizational crisis, those managers involved must more focus on the crisis while to others, the business must go on despite the crisis (Argenti, 2009). In addition to finding suitable replacement ahead of time for those who are on the crisis team, managers must try to anticipate the effects of crisis on other parts of the business (Argenti, 2009).
Top manager’s perception plays a significant role in organizational crisis (Rousaki and Alcott, 2006). Managers can make efforts to become aware of anticipated events by increasing their knowledge, familiarity and skills involved in dealing with crisis situations (Heath, 1998; Weick and Sutcliffe, 2001). When a Seattle television station reported in 1993 that a syringe had been found in a can of Diet Pepsi, the company implemented a crisis response plan that had been developed, tested and refined for more than 10 years (Crisis communications case studies, 1995).
Pepsi syringe scare happened at the beginning of a hot summer and with public sentiment rally in their favor, Pepsi-Cola used the opportunity to pitch its planned summer promotions (Greenberg, 1993). On June 21, the company ran full page advertisements in 12 national newspapers, and bottlers targeted between 300 and 400 local publications (Greenberg, 1993). The high temperatures and the Fourth of July holiday spurred people to buy a lot of Pepsi and helped Pepsi rebound quickly (Arnott, 1993). Two weeks after the scare, Pepsi-Cola sold 22. 4 million cases of Diet Pepsi, up from 15.
3 million the week of the scare (Arnott, 1993). Besides that, Pepsi-Cola worked closely with FDA to ensure that their product were safe (Greg, 1993). Kessler joined Weatherup on Nightline and both men stressed the implausibility of the claims and the criminality of making false statements (Schwartz, 1993). Kessler noted there have been several federal arrests of people who claimed to have found syringes, nails or other objects in Pepsi cans, and that others who had made such claims are recanting (Pepsi stories fizzling out, 1993).
Conclusion
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