Maggi. A household brand in India all across the sub-continent. For decades. Nestle, the parent company that owns the brand it bought from Mr. Maggi of Switzerland years ago could not be prouder and richer for it.
But back in the summer of 2014 something happened that today has become a case study for B-schools. On how to or not to handle a public relations nightmare.
Some government servant tasked with testing packaged goods in Delhi picked up a few samples from a store and sent them for testing at a government lab that may or may not have the cleanest and up to date test equipment. The test came back showing higher than prescribed level of MSG and lead.
It led to a back and forth between the righteous Swiss claiming superior process and technology that vouched for its product quality and the Indian babu bureaucracy with a hitherto unknown motive to lambast the gora gang of selling sub-standard food products to a third world nation.
This argument took on many hues not found in a packet of masala, with both sides bringing big guns to bear. The government's top cop for food safety vs. Big B himself endorsing the food was safe. Social media lit up opining everything from 'hoard all you can before they are gone' to 'down with Nestle' bhashan baji.
Finally Nestle ended up recalling the product from all shelves - whatever that meant in a non auditable supply chain - taking a hit to their profits north of $100M and finally using a Narayanan (part of Nestle's bureaucracy) to go appease to the local police.
Nestle apparently celebrated their victory when product went back on the shelves by having a second course of 2 minute noodles during a formal lunch in Vevey, Switzerland. But not before Baba Ramdev snuck in with his Patanjali.
But back in the summer of 2014 something happened that today has become a case study for B-schools. On how to or not to handle a public relations nightmare.
Some government servant tasked with testing packaged goods in Delhi picked up a few samples from a store and sent them for testing at a government lab that may or may not have the cleanest and up to date test equipment. The test came back showing higher than prescribed level of MSG and lead.
It led to a back and forth between the righteous Swiss claiming superior process and technology that vouched for its product quality and the Indian babu bureaucracy with a hitherto unknown motive to lambast the gora gang of selling sub-standard food products to a third world nation.
This argument took on many hues not found in a packet of masala, with both sides bringing big guns to bear. The government's top cop for food safety vs. Big B himself endorsing the food was safe. Social media lit up opining everything from 'hoard all you can before they are gone' to 'down with Nestle' bhashan baji.
Finally Nestle ended up recalling the product from all shelves - whatever that meant in a non auditable supply chain - taking a hit to their profits north of $100M and finally using a Narayanan (part of Nestle's bureaucracy) to go appease to the local police.
Nestle apparently celebrated their victory when product went back on the shelves by having a second course of 2 minute noodles during a formal lunch in Vevey, Switzerland. But not before Baba Ramdev snuck in with his Patanjali.
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