Nestle Social Media Backlash

Presented by PR Head

Agenda• Context• Backlash in Facebook• Nestlé Facebook Page• Nestle’s Stand• Nestle’s Actions• Nestle revamped PR Strategy• Key learnings

Context

• Nestlé, found itself mired in a public relations nightmare in 2010 with the environmental protection group Greenpeace International

• The Group held that the company’s chocolate confectionery brand Kit Kat contained palm oil, whose production was leading to the destruction of rainforests.

• Palm oil has a range of uses and is principally grown in Indonesia where it makes a substantial contribution to the economy.

• However, the expansion of palm oil cultivation came at the cost of destruction of rainforests, which were a home to the orangutans.

• Palm oil, derived from the pulp of the fruit of the palm tree, has a variety of uses ranging from food and consumer products to cooking oils and fuel additives.

Backlash in Facebook

• Nestlé went on to suffer a negative onslaught on social media• The Nestlé Facebook fan page suddenly saw an influx of visitors. Negative

comments about Nestlé ’s actions began to spread on the site.• It seemed as if Nestlé ’s Facebook page moderator had became too vigilant• Observers were shocked at the tone of the Nestlé moderator, who did not

seem to have a good attitude and wanted to censor opinion on Facebook.• Nestlé begun to remove all the critical comments and any comment where

the user had a profile picture with an altered Nestlé ‘s logo. • Greenpeace supporters started posting more and more negative comments

with altered logos.

Nestlé Facebook Page

Altered logos on Nestle’s Facebook page

Nestle’s Stand• Nestlé wanted to protect its Facebook page• As a reputed brand, we have been serving our customers with

utmost dedication and commitment for more than 140 years• We felt our reputation was being targeted with malicious

intent• As a first step, our team has already apologized

• Nestlé had joined a coalition calling for a moratorium on rainforest destruction for palm oil in Indonesia• We had become an active member of the Roundtable for

Sustainable Palm Oil.• We have suspended purchases from a supplier (Sinar Mas)

which had admitted to mistakes in the area of deforestation. • We have made it clear to its suppliers of blended palm oil that it

would not tolerate the presence of oil from non-sustainable sources

Nestle’s Actions

• Nestle has pledged to use only certified sustainably sourced palm oil by 2015• The company had made rapid progress on certified palm oil

and palm oil certificates and had covered 18% of its purchases and would cover 50% by 2011. • The company had conducted an in depth analysis of its

supply chain to ensure transparency and formulate detailed action plans• We have begun to audit our suppliers. • Nestle has intensified cooperation with international

organizations for building a global movement to support the • Development• Implementation• Disclosure of sustainable forestry practices

Nestle’s Actions

Nestle revamped PR Strategy• Nestle had set up a “digital acceleration team” as part of Nestlé’s

efforts to monitor social media sentiment 24 hours a day. • When the team sees problems, the communications unit co-

ordinates the company’s engagement with the relevant parties, such as

• Suppliers • Campaigners• Governments • Consumers.

• Nestlé executives from across the globe visit the digital acceleration team centre at the headquarters in Switzerland, to learn about managing social media communications and digital marketing.

Key learnings• Be prepared to use social media platforms• Be prepared for the possible crisis• Be fast, open and respectful in response• Take the issue and customers seriously • Get involved in the dialogue with civil activist groups• Should not use censors on users and contents (rights of free speech)

Key learnings