|
|
| • EXCH RATES |
|
Baht/$ 34.36/41 (Bid/Ask)
|
GOLD |
14450
+300
|
|
Dutch Mill kept mum when the Chinese scandal broke, awaiting scientific proof. But waiting too long could damage the brand beyond repair
WORANUJ MANEERUNGSEE and KRISSANA PARNSOONTHORN
Tan Passakornnatee, the president of Oishi Group, rushed to visit two people who had ended up in hospital after they drank Oishi green tea contaminated with hydrochloric acid. Mr Tan apologised to them and offered to pay all expenses even though he strongly believed that the contamination was not due to any error in his company's production process.
 |
| Consumer activists inspect candies at a supermarket in Ayutthaya. SUNTHORN PONGPAO |
That was four years ago. Now, consumers buy Oishi beverages with no doubts.
Mr Tan and others these days are watching with interest the struggles of Dutch Mill Co, which is facing a major food-safety scare. Its milk powder imported from China, used to produce pasteurised milk, was found to be contaminated with melamine. Though there are no reports of any harm to Thai consumers, melamine-tainted milk killed five babies in China and sickened tens of thousands.
But Dutch Mill handled its case quite differently, and now consumers are doubting the safety pf its products across the board.
Assoc Prof Kannikar Asavadorndecha, a public-relations lecturer at Chulalongkorn University, believes Dutch Mill mishandled the case and underestimated its severity. If the company had recalled products or suspended sales to show concern, consumers would feel better.
"Your image is gone now. You know, in western countries producers can recall or suspend their product sales if they are not sure about quality. It's a normal practice and their brands are still strong. Consumers are not as dumb as you may think," she said.
"In general, if consumers have trouble with a brand, the company should apologise first regardless of who is at fault," said brand-building expert Sohn Chongsrichan, CEO of Dentsu Young and Rubicam.
"You make a mistake by not apologising. Just saying 'I'm sorry' will soften frustrated consumers," said Mr Sohn. "Do not take a defensive approach, as it can make things worse."
He recalled the case of the angry driver a few years ago who smashed her new Honda CR-V because it had some production defects. The company did not give her a new car even after she'd made several complaints. The incident turned out to be the talk of the town and shook Honda's brand image.
The woman ended up with some compensation, and her case ultimately led to the passage of Thailand's first Product Liability Act. When the law takes effect in February of next year, consumers can sue the manufacturer and/or importer of a product if they are injured when taking or using it due to a manufacturing or design defect, or inadequate or incorrect directions of use.
Mr Sohn says that once a company has a problem with a brand, it needs to look back to the manufacturing process and check whether there is a problem.
"Focusing on product quality is the best way to keep the brand strong. Advertising won't help at all if the core value is in trouble," he said.
Christina, 40, a housewife, said she would not buy Dutch Mill products anymore since she has lost trust in the brand. The company knew that it used raw material from China with doubtful quality. It should have pulled its products from the shelves and waited until health authorities could certify product safety, she commented.
"Dutch Mill is so greedy it risked the health of people. It should be more responsible than leaving the burden with the Food and Drug Administration. What Dutch Mill did just protected its bottom line, not consumers like us," she said.
The FDA found 20 tonnes of tainted milk powder at Dutch Mill's warehouse in Nakhon Pathom and took 11 samples for lab tests on Sept 22. A few days later, another 100 tonnes of milk powder were seized at a port in Samut Prakan. The lab results released on Sept 30 verified all products were safe.
During this uncertain period, Dutch Mill executives did not explain the real situation to the public.
Kematat Kraivixian, corporate adviser to Dutch Mill, explained that the company decided not to say anything while it waited for the lab tests because it felt nobody would listen. "How can we say something without any scientific evidence to back it up? It was about product safety and we needed a third party to certify the results," he said.
Dutch Mill believed it would be viewed negatively if it tried to explain the situation and inform the public during the uncertain period. The company did consult with its brand builder and a PR agency but its silence in the immediate aftermath of the safety scare has created damage that will be difficult to repair.
Prev
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
Next
