NESTLE MAGGI CONTERVERSY

Maggi seems to be just that perfect quick-snack between meals and is so easy to make
that kids sometime make it alone. At the end of May 2015, India’s Food safety administration
(FDA) ordered Nestle India to recall its popular Maggi noodles after tests showed that the
product contained high levels of lead and MSG. Hence, the 2-minutes ready Maggi Noodles ban
in India was declared.

This Maggi controversy all began when V.K. Pandey, a 40-year officer of the Uttar
Pradesh Food Safety and Drug Administration, collected samples of Maggi last year for tests so
as to find out whether Nestle India contained any monosodium glutamate-MSG(commonly
known as Ajinomoto), a taste enhancer, which is not only present in Maggi but in mostly all
packaged food items.

A test in a lab revealed that the amount of MSG content was more than the accepted
level. Further tests in one of the best laboratories in Kolkata confirmed the high MSG levels and
lead content in Maggi samples. This discovery has prompted authorities in many states to either
send samples or order the withdrawal of Maggi from the shops. As you know the country's
biggest retailers and grocers have pulled Maggi from their store shelves.

Initial Responses of Nestle on the controversy as public communication

According to Nestlé's officials,

 There is no lead in noodles i.e. injurious to human consumption.

 MSG present in Maggi is purely natural and not artificial.
 The samples which FDA tested were expired.
Maggi focused on the technical and regulatory aspects of the crisis while neglecting
communications and public opinion. In its main defense, it stated that’s its tests of over 3,500
samples showed that lead levels were well below regulatory limits.
“This is a case where you can be so right and yet so wrong,” said Nestlé CEO Paul Bulcke,
according to Fortune, “We were right on factual arguments and yet so wrong on arguing. It’s not
a matter of being right. It’s a matter of engaging the right way and finding a solution.”
 Nestlé’s social media response was a disaster: Robotic replies, sharing heavy PDF files
in the name of responses; Nestle India’s social media damage control has been a joke. It
is clear that Nestle India was unwilling to establish consumer connect.
 Blocked all lines of communication with consumers: For more than a fortnight, barring
a computer-generated statement, there was no word from Nestle. Nearly all beat
journalists, wrote and re-wrote to Nestle for a more human, in-depth response, but Nestle
was too arrogant for a 2-minute reply.
 Slow response of Nestle: Indian officials first ordered the product recall on April 30, yet
the company did not address the media in Delhi or appoint a lobbying firm to represent it
in India until June. Media monitoring measurement could have alerted the company
about the fast-growing, troublesome media coverage and helped it respond. “Nestlé was
clearly caught with its noodles in a knot,” said B.N. Kumar, executive director of
Concept Public Relations and national president of the Public Relations Council of India
To be fair, the company faced substantial challenges, fearful consumers, an aggressive
media, tough regulators, and the difficult business climate of India. However, PR crisis
management experts and other commentators cite a number of mistakes that can serve as
lessons to other organizations.
 An appearance of arrogance: Nestlé argued that its own test results of Maggi noodles
were correct, which prompted confrontation with regulators who found different
results. Nestlé could have pursued a more engaging, transparent process. Jessie Paul,
founder and CEO of Paul Writer, suggested that it ask Maggi India personnel to become
involved with testing, obtain third-party witnesses, or split the same samples across
multiple labs.
 Lack of consumer engagement: The Nestlé team was slow to respond to consumers on
social media. Many Indians perceived its silence as admission of guilt. The Nestlé India
Twitter handle had one tweet on May 21 on the issue. The Maggi India Twitter handle
engaged only on June 3. Social media monitoring could have provided vital insights into
consumer sentiment and identified the emerging PR crisis.
 Overlooked cultural factors: Maggi did not consider the social and political issues of a
PR crisis in India, a country colored by its colonial past and skepticism of foreign
corporations.
  Media relations inadequacies: The Company, which has long favored a reserved media
relations approach, lacked media relationships as well as a system to access journalists.
 Overly complex answers: Some public communications were too complex when they
should have been brief and simple. In particular, a statement on its website stating that its
noodles were safe was too difficult to find and not immediately understandable to
ordinary consumers.
 Nestle stayed in denial: For a situation of this magnitude, the Nestle global site does not
even acknowledge the controversy in India. Maggi is Nestle India’s mascot. It is baffling
to think why the company will let it boil in a soup.
The Nestlé Maggi crisis in India demonstrates several crucial public communications lessons.
The controversy over allegations of lead levels in noodles proves that communicating the facts
well is just as important, if not more important, as the facts themselves. That’s a lesson Nestlé
executives in India learned the hard way.
Implementation of Effective Communication Methods to Overcome the Maggi
Controversy by Nestle

The largest food company in the world by revenue, known for its reticence over the
years, is now turning active on the communication front. Nestlé’s communications has
traditionally been handled by its internal team, unlike other fast moving consumer goods
companies, which regularly hire public relations firms for the job, in addition to their own
corporate communication teams.

About a week after FSSAI’s recall order, Nestlé India engaged Genesis Burson-
Marsteller, a subsidiary of New York-based Burson-Marsteller (BM), to handle the crisis. Three
to four executives from BM are part of the crisis team that is supervised by Prema Sagar –
principal & cofounder, Genesis-Burson-Marstellar, vice chair, Asia-Pacific.“Initially, the firm
failed to understand that the conventional attitude it has been operating within the
communication front does not work in this country,” said Prema Sagar – principal & cofounder,
Genesis-Burson-Marstellar, vice chair, Asia-Pacific.

The company used various social media channels to take care of its image while the
media was putting questions on its image.
 Initially, the company rejected the accusation that the noodles were unsafe and said on their
website and social media accounts that there had been no order to recall any products. A
statement on their website said “The quality and safety of our products are the top priorities
for our Company. We have in place strict food safety and quality controls at out Maggi
factories… We do not add MSG to Maggi Noodles, and glutamate, if present, may come from
naturally occurring sources. We are surprised with the content supposedly found in the
sample as we monitor the lead content regularly as a part of the regulatory requirements.”
This statement was made to revoke the Maggi Noodles ban.
 Nestle continued to keep its customers up to date on the investigation into the safety of
Maggi noodles in India. Nestle stated on the official Maggi Noodles Facebook page, Twitter
and website, that extensive testing revealed no excess lead in Maggi Noodles.
 Nestle used its Twitter and Facebook accounts to answer customers questions about the levels
of MSG and lead found in their noodles. The company continued to re-assure customers that
the noodles are safe and that they are a transparent company working closely with
authorities in India to resolve the issue.
 Nestle recalled all Maggi noodles from India. After re-assuring customers that its noodles
are safe, the brand did a U-turn and decided to recall Maggi noodles from the shelves.
CEO Paul Bulcke said “We are working with authorities to clarify the situation and in the
meantime Nestle will be withdrawing Maggi noodles from shelves.”
 Nestle decided to destroy more than $50million worth of Maggi Noodles in India after
they were deemed unsafe by regulators.

Results Achieved by the Effective Communication

 When Maggi was deemed unsafe in India, all eyes were on Nestle to see how they would
respond and manage the situation. Nestle defended its product on all social media channels
and rejected all claims that its noodles were unsafe. They used the best use of social media to
connect the masses. Initially, the websites which were used for promotion of the product was
now being used for maintaining its image.
 Maggi India Twitter account makes an impressive effort to respond to every tweet from
customers on this issue with a pre-prepared statement explaining that lead occurs naturally in
 soil and water. Nestle also explained the science behind the reason for the ban in simple
terms so customers could understand.

The scare was a huge blow to the company, which has been selling its Maggi products
for over three decades in India with 80% of the country’s instant noodle market. However,
through smart use of social media during the crisis, the brand limited further damage by
reassuring and informing customers to encourage them to continue buying the noodles in the
future.

Suggestions to the company

1. Maggi want the public to understand that we are dedicated to offering healthy, tasty
products of highest quality. Thus first priority to re-assess the quality testing facilities
and implementing quality standards all over there product range. Should setup Quality
Control Board comprising Nestle officials, members of Health
department, Government officials, and scientist. To achieve a goal of quality
management with the ensurence of all representatives. Once provide concrete evidence
that our products comply with government standards and contains minimal to
no unwanted compounds, then will be as a leader in social responsibility.
2. Should start a better customer –company communication channel to clear out doubt
in customers mind through social networking websites and other channels (In the
Coca-Cola Case they started a toll free number and created websites which included
FAQs .similar steps can be taken)
3. To build a better reputation and paving path for better future for Maggi (Nestle) should
be indulged in some social causes or environmental causes. This strategy would
bring maximum amount of positive review and coverage to the brand. The company
has to follow some CSR activities on the medical industry and help the poor who are
under the chronic diseases.
4. Maggi needs to really evaluate their PR & Brand Managing systems. The first news
about Maggi being unsafe came out on May 6th 2015. The PR and Brand managing
systems were sleeping till the 16th of May when the crisis blew up in thier face.
A brand that contributes 30% of its revenues and has 70% Market share and this is how
 their management responded. It was a really pathetic communication process. It has to
be corrected.
5. Next, they need to come clean with all their results. They should publish the test
results if Maggi is indeed safe as they claim. Else Maggi should come out publicly
and apologize. They should withdraw all their noodles in the market and devise a new
formulation. That way they will lose their market leader position but indeed they will
get back later.
6. It is known that MSG/lead contamination cannot be avoided completely due to the
contamination of the food chain right at the bottom. With the usage of fertilizers,
pesticides etc, contamination of food will always be there. At least all food companies
should have a statutory warning like cigarettes.
7. In order to work upon the above strategies a lot of funds are needed. In this time of
crisis no one would lend fund to us .So for the time being some of the fund spending
in not necessary areas can be relocated to this area ( During the crisis in Coca-Cola
,the company temporarily reduced 10% salary of all employees and Salaries were
reassessed and and adjusted after the crisis was resolved .) similar steps could be
taken .
8. Lack of foresight Company officials did not, or could not, think ahead or plan for
contingencies. While they communicated with government officials about test results, they
did not consider alternative strategies.