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Crisis Management: Fact Vs Crisis Management: Fact vs. Fiction Susan Borra, RD Eric Mittenthal Senior Vice President, Vice President, Public Affairs Communications American Meat Institute Food Marketing Institute AMI/FMI Meat Marketing Conference Nashville, TN February 25, 2013 American Meat Institute • Oldest and largest meat packing and processing industry trade association • Our members slaughter and process more than – 95% of the nation's beef, pork, lamb, veal – 70% of the turkey produced in the United States • American Meat Institute Foundation (AMIF) is a non-profit research, education and information foundation established by AMI Food Marketing Institute (FMI) 26,000 retail food stores & 15,000+ pharmacies in the U.S. • Combined annual sales volume of $680 billion • Three-quarters of all retail food store sales in the U.S. • Large multi-store chains, regional firms and independent supermarkets International membership = 200 companies, 50+ countries Associate membership = supplier partners of retail and wholesale members 3 Today’s Supermarket • Consumers visit a food retail outlet 2.2 times each week • Supermarkets carry over 38,000 items • Profit Margin of 1-2% • Differentiation from competition is key to retailer success 4 Source: FMI Trends 2012, FMI Speaks 2011 Top Reasons Consumers Select their Primary Supermarket • 81% Clean, Neat Store • 75% Low Prices • 71% High quality Produce • 64% High quality Meats 5 Source: FMI Trends 2012 Consumers on food selection. • What are the benefits to me and my family: Taste Health Safety Price Convenience Trust and Transparency are key to Consumers 6 Technology Empowers Consumers Demand for Transparency, Quality and Safety 7 Communication models Basic Communication Model • Uni-directional or we tell “them” approach • Who says - what - when - to whom - through what channel - with what effect Risk Communication Model • Multi-directional • Actively involves the audience as an information source 8 Source: National Center for Food Protection & Defense What do we know about consumer attitudes on the US food supply? 9 say America’s approach to food production is on the wrong track are undecided say on the right track All in all, do you think that America’s overall approach to food production puts us on the right track to living healthier lifestyles, or do you feel that Source: Edelman Public Relations/StrategyOne things are off on the wrong track? Research 2011 Why We are on the Wrong Track Source: Edelman Public Relations/StrategyOne Research 2011 Why We Are on the Right Track Source: Edelman Public Relations/StrategyOne Research 2011 For today’s session • Crisis/Risk Communication 101 • The anatomy of a crisis: a case example • Planning ahead to avert future crisis • Issues on the horizon For today’s session • Crisis/Risk Communication 101 • The anatomy of a crisis: a case example • Planning ahead to avert future crisis • Issues on the horizon Risk & Crisis Communication Risk Communication is about Crisis Communication is about Preparedness & Recovery reacting and responding • Planned, tested, • Spontaneous strategic • Post-event • Pre-event activities • Uni-directional • Multi-directional • Reactive • Proactive • Equivocal • Certain 15 Source: National Center for Food Protection & Defense Best Practices for Effective Risk and Crisis Communication 16 Source: Food Technology, Sellnow and Vidoloff, 2009 For today’s session • Crisis/Risk Communication 101 • The anatomy of a crisis: a case example • Planning ahead to avert future crisis • Issues on the horizon Case Example: LFTB March 6: Food blogger August Bettina Elias Dec. 30, 2011: Siegel’s 2009: McDonald’ online March 7, 8 NYT s removes petition 9: ABC New Michael ammonia- urges USDA Jim Avila Moss treated to remove dedicates questions LFTB from “pink slime” three safety of is supply from school nights to LFTB chain lunch the subject April 2011: March 5, 2012: March 8: March 26: BPI Season Retired The Daily suspends premier of microbiologist report operations of “Jamie Carl Custer told gets 75 percent of Oliver’s Food The Daily, "We mainstrea its operations Revolution” originally called m media facilities dramatizes it soylent pink." pickup the LFTB process using household methods 18 Plan Ahead What are the facts? Situation Analysis • What is being said in the marketplace? • What is being said/shown by media? • What more do we need to know? Where can we get that information? • What is the immediate need? • What is the long-term need? 19 Crisis Communication Network Who are the target audiences? • FMI/AMI employees • Members • Media • Customers • Consumers • Critics • Activists • Government What are the messages we say to each audience? 20 Best Practices for Effective Risk and Crisis Communication 21 Source: Food Technology, Sellnow and Vidoloff, 2009 Mad Cow, 2003 With permission from the Star Tribune 22 Scientists focus on danger - consumers on the ‘whole cow’ Timeline of Events ABC’s Jim The Daily Avila airs Three governors Reports that first of eight Safeway, converge in USDA will USDA will nightly news SuperValu South Sioux City permit buy LFTB for stories in and Food at press labels that School March about Lion drop conference to declare Lunch LFTB LFTB support beef LFTB industry March April 5 6 7 8 9 15 21 22 26 29 3 5 9 USDA BPI Iowa State Lunch Tray announces Announces Univ. Rally Blogger that Schools suspension of for the Truth Bettina Siegel may opt out operations at with Gov. starts petition of LFTB next three plants Branstad and year Rep. King Dates in red are dates that ABC aired a World News Tonight story About LFTB ABC News Coverage March 7,8 & 9, 2012 24 Blogger Activism: March 13, 2012 25 USDA March 15, 2012 26 "It is not dangerous at • This wasn’t about all. The question is safety whether it's socially • This wasn’t a rational acceptable." timeline of events with – New York University’s Marion a root cause Nestle • This was an emotional bandwagon Consumers believed they were deceived 27 Extensive Correction Efforts • Three national statements • Op-eds • Letters to the editor • Tweets • Comments in response to stories • Responses to consumer emails and calls Meat MythCrusher Video Invaluable Best Practices for Effective Risk and Crisis Communication 31 Source: Food Technology, Sellnow and Vidoloff, 2009 Clean Up in the Meat Aisle: BeefIsBeef.com 32 Blogger Activism: Rallying Cry for Transparency March 26, 2013 • “Rather, it is my belief that, like any other company, BPI should be free to sell its product so long as it continues to do so in a safe — and transparent — manner.” 33 USDA: March 22, 2013 34 35 So Why Did This Get So Big? • Unknown • Had a “sexy” name • Had “ick” factor • Jamie Oliver gave it star power • Unlabeled • Mom takes on the “Machine” / David and Goliath • Kids were involved via school lunch • “Chemical” involved = unnatural • Activist journalist that wouldn’t let go • Initially silent regulatory agency • Highly tweetable -- #pinkslime What did we learn? • Absence of labels on certain products can increase risk • When story breaks, there is NO time to wait • Err on the side of action • Having accurate images – even if they aren’t the prettiest -- is critical • Dialogue and transparency are essential • Vulnerability assessments/negative brainstorming need to be done • Social media programs are not optional What We Should Have Done • Prepare Better • React Faster • Discourage Term • Blog Frequently • Challenge Influencers • Amplify Positive Messages • Visuals, Visuals, Visuals Best Practices for Effective Risk and Crisis Communication 39 Source: Food Technology, Sellnow and Vidoloff, 2009 Lessons Into Action: “Meat Glue” • Held Press Conference w/in day • Wrote blog • Challenged influencers online • Promoted Correct Terms Lessons into Action: Meat Plant Tour Reaching the Audience How do we reach out to each audience? • Existing newsletter(s) • Email • Phone • Advertisement • Social media • Press release • Statement for media • Letter • Podcast • Website • Face-to-face meeting • Press Conference 42 Social Media by the Numbers • 1 Billion Facebook users globally • 175 million tweets/day – 56% of customer tweets to companies are being ignored • More video is uploaded to YouTube in one month than the 3 major US networks created in 60 years • Pinterest hit 10 million unique users faster than any site in history. Social Media Tools Used by Food Retailers • Facebook- 90% • You Tube 67% • Twitter- 65% • Foursquare 40% Benefits of Social Media to Food Retailers • Build Relationship with current/new customers 80% • Generate exposure for the company 45% • Communicate timely matters (specials, food recalls, etc.) 37% • Feedback/communication forum for customers 37% Moving Forward • Create Stronger Social Media Channels & Relationships • Determine Issues of Concern • Make More Visuals Available • Improve Social Media Monitoring Tweetdeck is My Best Friend Blog RSS Feed Muck Rack Expanding Twitter Presence Daily New Facebook Presence for AMI Blog Launched For today’s session • Crisis/Risk Communication 101 • The anatomy of a crisis: a case example • Planning ahead to avert future crisis • Issues on the horizon Members Rely on Us to Stay Ahead 54 56 AMI Perspective What’s on the Horizon • Production Practices – Antibiotics – Beta Agonists • Processing Technologies – Mechanical Tenderization – Mechanical Separation – Advanced Meat Recovery AMI Crisis Center 58 Connecting with Consumers on Food Issues: Plan Ahead • Trust is Key –Communicate Benefits and Risks –Be Transparent –Continuous, Consumer Centered Communication 59 While supermarkets
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