The Maggi Noodle Safety Crisis in India (B)
The local government in Delhi has ordered a ban on Nestlé's flagship product in India—Maggi Noodles, citing excessive lead content per government lab tests. Nestlé disputes the government tests, noting that internal and third-party tests show the product to be safe. There is considerable confusion in the media and amongst Nestlé's customers, and Maggi sales begin to plummet. Other local governments and India's federal food-safety regulator also consider bans. Nestlé must decide how to respond—options include suing the regulators and withdrawing the product, which could impact up to 25% of Nestlé's India sales.
Keywords: crisis management; leadership; multinationals; globalization; regulation; customer relations; Business and Government; Safety; Leadership; Food; Multinational Firms and Management; Governance Compliance; Crisis Management; Customer Focus and Relationships; Business and Government Relations; Food and Beverage Industry; Delhi;
Citation:
Ramanna, Karthik, and Radhika Kak. "The Maggi Noodle Safety Crisis in India (B)." Harvard Business School Supplement 116-014, February 2016. (Revised June 2016.) View Details