I know the title sounds harsh but i just get really annoyed that Maple Leaf is handling its current crisis in such a poor manner, from a communications angle.
So for those who have no idea what’s going on, here’s the break down…
Maple Leaf is an American JR Canadian Company who deals with processed meat. Recently, it was discovered that a link has been determined between a strain of Listeria bacteria found at one of the company’s plants outside of Toronto, and the strain of Listeria that has caused illness and loss of lives.
It’s a standard crisis and the company has been affected by a 10% drop in share price from $11 to $8.8 (close to 50% since June…) The company has made several sound decisions:
1) They have recalled all products from that a particular plant. This has been an estimated cost of $20 million. The brand value decrease, needless to say, is going to be hit even harder…
2) They are currently working with the health authorities to rectify the issue.
They’re also facing these consequences:
1) 15 deaths in total followed by lawsuits coming in hard and fast
2) Loss of further sales
3) Potential loss of business partners
So this is really just the big picture of it with the main issues highlighted out… While their traditional press release has been impressive and up to date, I’m really annoyed with the way they handled the digital media part of it.
Here’s what they have done…
1) They set up a “Dark Site” posting an apology and a pledge of sincere reform.
2) Included are links to a YouTube video by Michael McCain, CEO, for an apology video. (Shown below)
3)In addition, there is an aggregated press release you can follow here to put into your Google Reader.
Number one big mistake i found was that by setting up a dark site in times of a crisis is not cool. Although digital media is the fastest way to reach out to the concerned public who are concerned about this doesn’t mean that it was the right medium to use.
Having little interaction on the social media scene with users and stakeholders, setting up a “dark site” in times of a crisis wrong. You cant expect the stakeholders looking at your site to be able to respond with little or no understanding of your current plight because of the lack of interaction. I wouldn’t be surprised if i’m the only one to have been pissed off by this. I talked about this in my post on Crisis management: Social media the way to go?
Secondly, was McCain the right guy to use for the video? I mean you’re talking about a product which has caused deaths…. The YouTube video seemed scripted to me, with little emotion to it other than falling share prices being on top of his mind… Could a better spokesperson have been used?
But while these critics seem a little harsh, its just that companies shouldn’t jump on the bandwagon just because the medium is the “cool” thing to use right now. Traditional approaches have their classic touch of “tried and tested” track record.
The only good thing is the RSS feed for the press releases to keep you up to date about the current event. This will probably blow over within the next month, but I do hope the company recovers its relationship with its stakeholders, built back its brand equity and confidence in investors.
For now, its a time where the company has to take the punches hard and fast before they can come through the storm.
What do you think the company should have done better? Was their use of a “dark site” appropriate? Share your thoughts!!
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