The Analysis of Crisis Communication Strategies: Redux Beverages Introduction of Cocaine Energy Drink

By definition crisis is a situation that has reached a critical phase (Crisis definition). Crisis is characterized by its lack of stability, unpredictability and short decision-making time. According to Fearn-Banks (1996) crisis is “a major occurrence with a potentially negative outcome affecting an organization, company, or industry, as well as its publics, products, or good name”. The negative consequences of a crisis are not limited; crisis can be, but not necessarily, a very serious threat to organization’s functioning and stability. Some scholars argue that an organization can benefit from a crisis situation if such is handled properly (Ulmer, & Sellnow, 2000). Communication scholars have been conducting multiple researches, seeking to formulate some generalized and applicable theories of crisis communication and crisis management. Since crisis is a crucial period in lifetime of an organization that can affect its future, understanding crises and knowing how to manage these difficult situations effectively are essential skills that corporate managers should posses. This paper will explore the crisis of Redux Beverages which was caused by controversy surrounding the launch of the new product.

On September 25, 2006, a new Las Vegas based brewing company – Redux Beverages launched a new energy drink called Cocaine. Since the first days on the market the drink has become very controversial. The public didn’t have a problem with the content of the new beverage, which is very similar to Red Bull or Monster. It was its’ name that people didn’t really feel quite right about. Redux Beverages’ CEO and inventor of Cocaine, Jamey Kirby thought that naming an energy drink after a dangerous narcotic was “a fun name”, the public, however, did not agree (“Cocaine drink claims” 2006). The negative publicity that Redux Beverages received as a result of the launch of new product led to the eruption of a reputational crisis. The public accused Redux Beverages of promoting and

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