DIET PEPSI PR CASE

History Lesson Part II: Diet Pepsi


In 1993, Pepsi-Cola found itself in a crisis situation when a man in Tacoma, Washington claimed he had found a syringe inside a can of Diet Pepsi. Soon after the story hit the news, claims surfaced all over the country. People claimed to find objects from bullets to crack cocaine vials. Pepsi-Cola knew that the foreign objects had been inserted by people outside the company who had tampered with the product.

Pepsi-Cola decided to use a defensive strategy, claiming its innocence in the matter. Proving the company’s innocence would be pivotal in protecting further damage to Pepsi-Cola’s brand name. Pepsi employed a variety of strategies to deal with the problem.

First, Pepsi attacked the accuser claiming that the objects had been inserted after having been opened and that many people do this in order to earn money from a settlement. The company openly declared that it would “pursue legal action against anyone making false claims”.

Second, Pepsi used a denial strategy saying that there was no crisis. Pepsi President Craig Weatherup made appearances on television and gave interviews to radio stations and newspapers saying that Pepsi’s bottling line was secure. 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.

The Pepsi crisis turned out to be a hoax. Individuals who had purposely inserted foreign objects into cans were brought to court. Pepsi was able to rebound from the hoax using an effective crisis public relations campaign which combined various strategies.

Pepsi-Cola handled the situation exquisitely. The company communicated with the public across virtually all media. Investigations took place in order verify the integrity of Pepsi-Cola’s bottling plants. When it became clear that there was no possible way that there could have been foreign objects inserted before being sealed, the crisis had ended.

In this case, there was no substance to the crisis. This can occur when false claims are made, such as the ones made in this situation. While there might not even be an actual crisis, the perception of a crisis can stir enough negative sentiment from the public to significantly damage the company’s image. The Pepsi case study shows that the perception of a crisis is as important to manage as an actual crisis.

In order to show that a perceived crisis does not actually exist, it is important to communicate with the public and show them that no crisis actually exists. Honesty and open communication facilitates the management of a public relations crisis. Additionally, communication must occur during the early stages of the crisis and communication must occur often. A crisis, whether real or perceived, requires the implementation of a crisis public relations plan.

Wilcox, Dennis. (2006). Public Relations: Strategies and Tactics. Boston, MA. 8th Edition. Pg. 262-263.

PT ADYATMIKA SAKTI NUSANTARAno.1 Communication Strategic Consultant