Pepsi Cola's Syringe Cs

Pepsi Cola's worst nightmare began inauspiciously enough on June 10, 1993 when an elderly Fircrest, Washington, couple claimed that they had discovered a syringe floating inside a can of Diet Pepsi.

For the next two week, the 50,000 people of Pepsi Cola- from CEO and corporate communications staff to independent bottlers- worked round the clock to mount a massive public relations offensive that effectively thwarted a potential business disaster for its 95-year old trademark and a potential devastating blow to one of the world's foremost consumer reputations.

The Pepsi case is a tribute to sound communications thinking and rapid, decisive public relations action in the face of imminent corporate catastrophe.

On June 13, the commissioner of Food and Drug Administration (FDA), David A. Kessler, warned consumers in Washington, Oregon, Alaska, Hawaii and Guam "to inspect closely cans of Diet Pepsi for signs of tempering and to pour the contents into a gals or cup before drinking".

Meanwhile, Pepsi cooperated fully with Commissioner Kessler and the FDA. While other consumer firms have adopted an adversarial position toward the watchdog agency, Pepsi embraces FDA investigation. On June 17, Commissioner Kessler held a press conference in Washington, DC unequivocally characterizing the controversy as a hoax- the product of "misguided individual acts, magnified and multiplied by the attendant glare of media, and a predictable outbreak of copy-cat behavior.

After FDA/OCI's arrested of 55 suspected hoaxers, was the bottom-line aftermath: Not only had Pepsi weathered the media storm emerged with its credibility intact, but the impact on Pepsi's sales was negligible. President Weathercup reported that sales had fallen just 3% at the height of crisis, approximately $30 million. By July and August, Pepsi's sales were up to 7%, the best summer in five years.