According to International Strategy Consultants MTI, Brand New Zealand, Fonterra and their product brands are likely out ‘clean’ from the recent crisis of whey protein producing a bacteria that could cause a rare illness called botulism.
"Product re-calls are an inevitable part of large-scale global manufacturing and consumers are increasingly being exposed to such re-calls across many categories. Think of Coke, Nestle, Toyota, J&J to name some of the prominent cases. What is important is to differentiate between willful sabotage or cheating (like the recent case of Horse Meat labeled as beef in Europe) Vs. genuine mistakes (which the consumer would 'pardon' if the brand is trusted)" said the MTI CEO
Hilmy Cader went on to explain that a brand is like a P&L where the currency is Trust and therefore Brand New Zealand, Fonterra and their product brands are likely to have a relatively low impact and a fast recovery period. He further stated that "From a global perspective, Brand New Zealand has always been a source of highly trusted, clean, safe and environmentally friendly products, with an unblemished track record. Brand New Zealand does not suffer from any sensitive international political perceptions that can impact commerce. (Vs.for example Denmark and the Arab Boycott). All this means that the Brand New Zealand has a high level of 'Trust' on their 'consumer balance sheet', which can certainly help to withstand the impact from such a crisis. In Sri Lanka, Brand New Zealand has exceptionally high brand equity due to the Anchor Brand."
Mr. Cader believes what will assist Brand New Zealand is the approach of their Government in being sincere in admitting and alerting the global consumer on the mistake and have not tried to disguise or distort the truth, which is one of the biggest mistake in corporate disaster management.