4. Date: October 2003
The Crisis: Cadbury Worm Contamination Incident
Background: Reports emerged claiming that a
consumer had found a worm in a Cadbury chocolate
bar.
Impact: Widespread consumer panic, negative
media coverage, and declining sales.
Resulted in: Loss of consumer trust, reputational
damage, and potential legal implications.
6. What the company did Right?
0.1 One of the key elements of Cadbury’s crisis
management strategy was consumer education
0.4 The company proactively underscored
Cadbury’s health conscious identity, and
invited people to come and see its
factories
0.3
Under Project Vishwas, it engaged with over
1,90,000 retailers that sold its products
0.2
New Packaging: At a cost of over ₹15 crores,
Cadbury imported machines that could heat seal
the foil and achieve high standards of improvised
packaging.
10. Learnings
Proactively addressed
much ahead of time
02
The consumers gave
Cadbury another
chance.
01
Total value chain should
be mapped, Reputation
Preservation
04
Product quality and
safety does not end
with the product
leaving its factory
03