PepsiCo and Communication

Paper Summary:

The paper discusses how in the early 1990s PepsiCo was blamed, in multiple claims, for selling cans of Diet Pepsi with foreign objects inside. The issue first arose as only a local problem but soon escalated into a widespread, national news story and became a crisis for PepsiCo. The paper describes how in dealing with this issue, PepsiCo used both internal and external communications smoothly to manage the crisis. The paper shows how because PepsiCo created a crisis communications plan that involved several departments and focused on four key principles, it was able to resolve the crisis while defending its position and upholding its reputation.

From the Paper:

"The first case of a foreign object found in an unopened can of Diet Pepsi was reported on June 9, 1993 in Tacoma, Washington. Washington residents reported finding a used syringe in a half-empty Diet Pepsi can. Only one local television station reported on this story. The following day, another claim was made in Washington, and in the course of one week, more than 50 incidents of foreign objects, including sewing needles, screws and a bullet, being found in Diet Pepsi cans were reported in 24 states. The issue was now on the national level, and news media all over the country were reporting on the widespread claims (Miller and Glick 1993). Adding to this obstacle was the pattern of claims, some of which were fatal, regarding product tampering. Pepsi could not see any rational reason for the reported incidents and decided against recalling the product."

Sample of Sources Used:

• Miller, Annetta and Daniel Glick, "The Great Pepsi Panic" Newsweek 28 June 1993, p. 32
• Vos, Gail. Tales, Rumors and Gossip. Englewood: Libraries Unlimited, 1996.

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