How Nestle Maggi Used Social

Media For Damage Limitation After

It Was Banned In India

Sneak Peak:

Read this case study to know how Nestlé Maggi used multiple digital channels to
cope up with the situation after Food safety administration (FDA) of India ordered
the company to recall its popular 2-minute Maggi noodles at the end of May 2015
when tests showed the product to contain high levels of lead and MSG.

 Company: Nestlé Maggi

Industry:  Food & Baverage

Tool Used: Social Media Marketing

Result: 21% Improvement in Conversion

Business Type: B2 C

The Brand: Nestlé

Nestlé is a Swiss transnational food and beverage company headquartered in Vevey,
Vaud, Switzerland. It is the largest food company in the world measured by
revenues,and ranked #72 on the Fortune Global 500 in 2014.

 The Action!

21st May 2015 – Orders to recall Maggi noodles

Nestlé India was ordered by Indian food inspectors to recall a batch of Maggi
Noodles from the northern Indian state of Uttar Pradesh due to the claim that tests
have found Maggi instant noodles ‘unsafe and hazardous’ and that the food &
beverage company was accused of failing to comply with food safety law.action!

Initially the global food & Beverage Company rejected the accusation that the Maggi
noodles were unsafe and they announced on their website and social media outlets
that there are no orders to recall any products.

A statement on their website said that:

“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.”
The Crisis Management!

1st June – Nestlé re-assured customers that its noodles are safe
Nestlé consistently shared the updates on the investigation into the safety of Maggi
noodles in India with the customers through Maggi noodles’s official India Facebook
page, Twitter and website. The food & baverage company announced on these
platforms that according to the extensive testing there is no excess lead in Maggi
noodles.
2nd June – Nestlé expressed thanks to customers on social media for
their support
On its twitter & Facebook page, the food & baverage company interacted with the
customers, answered their questions about the levels of MSG & lead found in their
noodles and thanked them for their support. The company consistently reassured
customers about the safety of the noodles and that they are a transparent company.
They updated the customer on how closely they are working with authorities in India
for resolving the issue as soon as possible. The company also explained the science
behind the tests as to what lead & MSG giving an informative breakdown of the
ingredients in their product at the same time.

@MaggiIndia made a remarkable effort in responding to every tweet from customers

on this issue with a well thought-out statement that explained how lead occurs
naturally in soil and water.
3rd June – Nestlé started an FAQ page on its official website
Apart from consistently engaging with customers in an active dialogue on social
media channels such as Facebook and Twitter, Nestlé also created a FAQ page on
its official website for answering all questions.

FYI: tweet – retweeted 846 times:

4th June – Nestlé rectraced its steps and recalled all Maggi noodles from
India
After the brand reassured the customers that its noodles are safe, it did a U-turn and
settled on recalling Maggi noodles produced in India.

Nestlé CEO Paul Bulcke said while speaking to the media “We are working with
authorities to clarify the situation and in the meantime Nestlé will be withdrawing
Maggi noodles from shelves.”

The food & baverage company finally chose to destroy more than £32million
($50million) worth of Maggi Noodles in India when they were considered unsafe by
regulators.
3rd July – Testing on Maggi noodles in other parts of the world found
levels of lead were within food safety levels
After the food safety panic in India Maggi noodles was tested in other parts of the
world for reassuring the consumers that they are safe. Tests in UK declared that the
levels of lead in the product are within EU levels followed by tests Canada that as
well cleared Maggi noodles as safe.

The Summary: How Social Media Helped In Damage Limitation?

When FDA in India deemed Maggi noodles, one of Nestlé’s top products unsafe,
everyone was waiting for Nestlé response as to how would they manage the
situation? In the beginning the food & baverage company defended its product
through various digital channels rejecting all claims that its noodles were unsafe.

Through social media that included Facebook and multiple Twitter accounts (main
Nestlé account, Nestlé India, Maggi India) Nestlé reassured customers that its
product is safe. The company tried responding to each & every comment on social
media directly. They even created a section on their main website for sharing
updates with the customers consistently.

However, due to the pressure that grew on the global company, Nestlé’s CEO
announced in a press conference that they will withdraw all Maggi noodles in India
from shelves for complying with the regulators.

Again through digital channels Nestlé explained the customers as to why this
decision was made and answered all their questions. The company also elucidated
the science behind the reason for the ban in simple terms to make the customers
understand.

The panic was a big shock for the company that had been selling its Maggi products
for over three decades in India covering 80% of the country’s instant noodle market.
However, the brand made smart use of digital channels mainly social media to
manage the crisis and limited further damage by informing, updating and reassuring
the customers to give confidence to them to continue buying the noodles in the
future.
The Comeback: August 2015

It was undoubtedly a difficult summer for Nestlé India however it was just the
summer as very soon the company received some positive news when an Indian
government approved laboratory found that Maggi noodles in fact complied with
national food safety standards.

The FSSIA (Food Safety and Standards Authority of India) was slammed by India’s
food minister for creating an environment of panic in the food industry. In the mean
time, Maggi noodles were cleared in many foreign countries; Nestlé received
permission from the Bombay High Court as well for exporting Indian Maggi noodles.