Navigating the Crisis: Lessons for Iconic Indian FMCG Brands

By Elets BrandStory - 04 June 2024
Brand Crisis

The recent bans on Everest’s Fish Curry Masala and MDH’s Curry Powder in Malaysia, Nepal, Hong Kong, and Singapore due to alleged Ethylene Oxide (EtO) contamination have sent shockwaves through the Indian FMCG sector. These legendary brands, revered staples in almost every Indian pantry, are now under intense scrutiny, prompting a crisis that threatens their foundations. Industry experts are rallying to guide how these titans of the spice world can navigate this tumultuous period and emerge stronger.
Nisha Sampath of Bright Angles Consulting sees this as a pivotal moment for Everest and MDH. She describes it as a “watershed moment” for traditional Indian brands attempting to conquer global markets. “This is not just a crisis; it’s an unprecedented opportunity for Everest and MDH to reinvent their operational and crisis management strategies,” she asserts. Sampath emphasizes that understanding and adhering to international food safety regulations is non-negotiable.

Sridhar Ramanujam, CEO of Integrated brand-comm, insists that these brands must rise to the occasion with unparalleled urgency and transparency. “These brands serve families, not just individuals. The trust of millions is at stake,” he states passionately. Ramanujam recalls the catastrophic impact of Cadbury’s worm infestation scandal in 2003 and how a swift, strategic response turned the tide. “Cadbury’s comeback was legendary. Everest and MDH must channel that same resilience and ingenuity,” he adds.

Tarunjeet Rattan of Nucleus Public Relations is adamant that silence is not an option. “Their silence is a vacuum that breeds mistrust. They must seize control of the narrative immediately,” she demands. Rattan advises an aggressive communication strategy highlighting their commitment to quality and safety. “Proactive communication is the lifeline of their brand integrity,” she emphasizes.

Bhaskar Majumdar of Egis highlights the need for immediate, transparent statements addressing the bans and outlining their rigorous safety measures. “Consumers need to hear directly from the brands. Clear communication about their commitment to quality and the steps being taken to resolve the issue is essential to restore faith,” he advises. Majumdar suggests thorough investigations into their supply chains to root out potential contamination sources, advocating for recalls or product exchanges if necessary.

Drawing parallels to past crises, Ramanujam recalls how Cadbury turned its crisis into a trust-building campaign, reinforcing the critical importance of consumer trust. “The Vishwas campaign, Cadbury’s revamped packaging, and the endorsement by Amitabh Bachchan are blueprints for crisis management success. Everest and MDH must adopt similar bold strategies,” he insists.

In this era of heightened consumer awareness, the stakes have never been higher. Sampath notes the rise of smaller, agile D2C brands like TheWholeTruth Foods, which thrive on direct consumer engagement and transparency. “Legacy brands must evolve, adopting modern communication tactics and engaging consumers at every touchpoint,” she advises.

With India’s spice exports reaching $4.25 billion in 2023-24, accounting for a significant share of global spice exports, the pressure is on Everest and MDH to resolve this crisis and set new benchmarks in quality and consumer trust. This is not just a challenge; it’s a clarion call for these iconic brands to redefine their legacy and reclaim their place in the hearts and kitchens of millions worldwide.

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