Crisis management in Belgium: the case of Coca‐Cola

Abstract

Belgium was still reeling from fears over mad cow disease and from the news that the carcinogen, dioxin, had been introduced inadvertently into animal feed, when yet another health crisis rocked it. This new crisis was precipitated by consumer complaints about an irregular taste and smell in bottled soft drinks and by reports that more than 100 consumers had become ill after noticing an odour on the outside of canned soft drinks. As a result, The Coca‐Cola Company, under instructions from the Belgian Health Ministry, withdrew its trade‐marked products from the Belgian market. The effects of this crisis were felt not only within Europe, but also in countries as far away as Japan and India. Subsequently, the company identified specific production and distribution problems which could have contributed to the health crisis. Pursuant to the Ministry’s order, the company took immediate steps to remedy those problems, and the Ministry’s ban was lifted. In addition, an aggressive marketing campaign was launched in an effort to regain consumer trust, confidence, and market share. Nevertheless, this incident resulted in substantial financial costs to The Coca‐Cola Company and in considerable damage to its global image and reputation.