Crisis Management SE in the USA Bob Krouse Midwest Poultry Services April 5, 2011
Agenda • What Happened • What We Did • Results
New Egg Safety Rule July 9, 2010 • Industry Prepared for Potential Crisis: • Established roles and responsibilities • Developed Egg Food Safety PR and Crisis Protocol • Created online social media crisis plan • Launched www.eggsafety.org • Created #eggsafety Twitter account • Activated a media hotline • Vetted credible, third ‐ party experts
Largest Egg Recall in US History Aug. 18 • Voluntary Recall of 550 million eggs • Two Iowa Farms • Dozens of brands affected • But less than 1% of all US eggs
Daunting Media Coverage • Online and print coverage • Broadcast stories were in the tens of thousands Egg Recall Media Coverage 2600 2400 2200 2000 Number of Stories 1800 1600 1400 1200 Media Stories 1000 800 600 400 200 0 12 ‐ Aug 19 ‐ Aug 26 ‐ Aug 2 ‐ Sep 9 ‐ Sep 16 ‐ Sep 23 ‐ Sep 30 ‐ Sep
News Story Lifecycle • Social media conversations • Slower to start and much slower to taper off • Traditional media is the driver
What Did We Do?
By the Numbers • +5 million hits to EggSafety.org over 10 days – Peak day exceeded 1 million hits – Government sites linked to EggSafety.org • Responded to: – 2,000 media inquiries via hotline – 3,000 consumer inquiries • +25,000 online and print stories • +32,000 mentions of recall via Facebook
Online Actions • AEB launched adwords program for recall ‐ related search terms on Google, Yahoo, and Bing • Directed thousands of people looking for info online to eggsafety.org • Posted regular Twitter and Facebook updates
Understanding the Conversation • “Outbreak”, “Cruel”, “Massive”, “Hens,” “Tiny,” and “Humane” were notable. • Analyzing the data, many users were discussing both the Salmonella Outbreak and their feeling that Hens experience Cruel Treatment by living in Tiny cages.
HSUS Joins In
Steering the Conversation
Steering the Conversation
Steering the Conversation
Steering the Conversation
Steering the Conversation
Online Conversations
Online Conversations
Online Conversations
Understanding Consumer Sentiment • Conducted two rounds of consumer research during first few weeks of recall to gauge consumer awareness, sentiment • Aug. 20 – 21 • Aug. 28 ‐ 29
Awareness of the Recall Awareness of the recall increased slightly from Survey #1 to Survey #2 due to TV news, newspapers and word ‐ of ‐ mouth. Q1. Within the last few days, have you heard anything about egg safety issues? (Check all that apply.)
Effect on Egg Consumption In both surveys, a majority of consumers said that the recall would have no effect on their egg consumption. Q2. How did this egg safety issue affect how you eat eggs?
Effect on Egg Purchase In both rounds, a majority of consumers said that the recall would have no effect on their egg purchase. Most of those who did expect an effect said that they would pay more attention to brands. Q2. How may this issue affect how you purchase eggs?
Image of Egg Farmers The second round showed a higher number of consumers who said the recall gave them a more negative image of egg farmers. Q4. How does this issue make you feel about American Egg Farmers?
Restoring Consumer Confidence AEB reallocated $1 million dollars for campaign to maintain/regain consumer confidence in eggs • Distributed statement from America’s egg farmers on egg safety – 200 media outlets • Developed :60 national radio commercial with egg farmer Chris Pierce
Ran full ‐ page ad in national daily newspapers USA Today , Wall Street Journal New York Times and dailies in the largest 25 US cities
Restoring Consumer Confidence • Coordinated tour with Elizabeth Weise • Held at Pearl Valley Eggs • Attended by Dr. Jeff Armstrong • Features Hongwei Xin
Restoring Consumer Confidence • Coordinated tour with Elizabeth Weise • Held at Pearl Valley Eggs • Attended by Dr. Jeff Armstrong • Features Hongwei Xin
Restoring Consumer Confidence • Animal welfare and food safety conference • Tampa, FL • Cal ‐ Maine
Restoring Legislative Confidence • Met with FDA to request universal vaccination, explain upcoming UEP revisions to food safety initiatives, formation of scientific committee, etc. • Met with USDA to explain same steps and share perspectives on issues raised about USDA audits, grading, Shell Egg Inspection Program • Conducted numerous on ‐ the ‐ record and background interviews with major national media and trades • Briefed key Congressional offices on UEP’s proactive steps, including majority and minority staffs of House and Senate Agriculture Committees and Appropriations Committees • At committee’s request, met with staff of House Energy and Commerce Committee to provide factual information about UEP Certified Program and related matters • Responded to inquiries on industry programs and practices from various federal agencies, including Congressional offices, FDA, AMS, FSIS • Briefed key agricultural group allies (AFBF, NTF, etc.) on universal vaccination and other response points
Results
Effect on Egg Consumption How did this egg safety issue affect how you eat your eggs? a) N/A because I have not heard anything. (22%, 15%, 32%) b) It has not affected how I eat eggs (50%, 52%, 46%) c) I have stopped eating eggs (8%, 9%, 4%) d) I am going to reduce the number of eggs I eat or serve in the future (3%, 4%, 3% ) e) I am more conscious about how I cook my eggs (17%, 20%, 14%)
Effect on Egg Purchase How may this issue affect how you purchase eggs? a) N/A because I have not heard anything (22%, 16% 33%) b) This will not affect how I purchase eggs (43%, 45% 43%) c) I will not buy as many eggs as I did before (8%, 9%, 6%) d) I will pay more attention to the kind/brand of eggs I buy (28 %, 31%, 19%)
Egg Sales Recovered Quickly Fresh Eggs Unit Sales v. Year Ago 32,000,000 31,000,000 30,000,000 29,000,000 28,000,000 27,000,000 26,000,000 25,000,000 24,000,000 1 Week Ending Aug 15, 1 Week Ending Aug 22, 1 Week Ending Aug 29, 1 Week Ending Sep 5, 1 Week Ending Sep 12, 1 Week Ending Sep 19, 1 Week Ending Sep 26, 1 Week Ending Oct 3, 2010 2010 2010 2010 2010 2010 2010 2010 2009 2010
Questions
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