Case Study, Perrier Water Company

Bad PR Case Study Examples Perrier Recall 1) Problem  Perrier, the largest US bottled water company (commanding 57% of US market), voluntarily recalled its entire inventory in the US after tests showed the presence of the chemical benzene in small sample of bottles in North Carolina in 1990.  The product was not pure and could also contain harmful substances more dangerous than tap water, creating a danger of product reputation collapse.  Reports and statements were very inconsistent: FDA spokesperson said there was no health threat, while North Carolina Health Department said that there was a risk. Also, Perrier placed a paid advertisement stressing that there was no impurity and tests show traces of Benzene were too minimal to affect health, then placed a full-page ad in papers a month later announcing Perrier return, admitting mistake, announcing problem had been fixed, and insisted spring water was never the problem. 2) Key Strategy  Perrier conducted its own tests after the North Carolina lab found benzene and decided to tell public that the amount was not harmful to health, even though it was.  Perrier placed a paid advertisement stressing that there was no impurity and tests show traces of Benzene were too minimal to affect health, then placed a full-page ad in papers a month later announcing Perrier return, admitting mistake, announcing problem had been fixed, and insisted spring water was never the problem. 3) Result  After the New York Times announced on Feb. 10, 1990 (seven days after benzene was found) that production had been halted worldwide, stocks dropped from 1,692 francs a share to 1,490 franks a share, then again to 1,413 francs a share after the Times announced that Japan also removed Perrier from shelves.  Perrier was a victim to its own reputation and hardly acknowledged the event. The company tried to minimize consequences in an inconsistent manner, while expelling too many excuses and causing controversy. Perrier didn’t try to restore