It all started with a simple school experiment conducted back in 2004 by two New Zealand school students to test the measurable levels of vitamin C in Ribena. The initial results demonstrated there was no measurable vitamin C in the product, and further investigations proved this was indeed the case.
A lengthy court case recently concluded with GSK making two key admissions: the first, that its advertising — which claimed that the blackcurrants used in its products contained four times the amount of vitamin C as oranges — may have misled the public into believing the drink did in fact contain vitamin C.
The second key admission admits that labels on Ribena’s RTD product were wrong to claim that it contained 7mg of vitamin C per 100ml, when it in fact had no detectable vitamin C.
After GSK admitted to the two charges, along with more than 10 other breaches of the Fair Trading Act, the Auckland District Court slapped the company with what appears to be a comparatively small fine of NZ$217,000 (US$158,000). GSK was ordered to engage in a one-month corrective advertising campaign in the country’s four leading print titles, which could cost more than $100,000.
Clearly, GSK globally has not handled the PR crisis well — surprising in that it boasts an impressive line-up of PR agencies among its global roster, including IPG stablemates Weber Shandwick and Golin Harris. In New Zealand at least, it has been dragged kicking and screaming into the apology process, with many observers speculating its eventual admissions were simply a means of mitigating any damages payment.
New Zealand media reports have indicated sales have dropped by 10 to 12 per cent compared with the same time last year, and questions over Ribena’s vitamin C content have been raised in other markets.
What should have been a straightforward admission and apology process has dragged on and has done the brand no favours.
Fact Box...
2004: Two New Zealand students discover Ribena contains no measurable vitamin C, contrary to its advertising claims.
March 2007: GSK appears in court after the New Zealand Commerce Commission brings 15 charges under the Fair Trading Act against the company.
March 27: GSK pleads guilty to all charges, is fined NZ$217,000 (US$158,000), and ordered to undertake a corrective ad campaign.
Damian Coren, regional director, Arc Worldwide, Southeast Asia
Homer Simpson, the greatest social commentator of our time, once said: “Marge, it takes two to lie: one to lie and one to listen”.
I grew up in Australia drinking Ribena; my mum and I benignly happy and willing conspirators. She believing that it had four times the vitamin C of oranges and me believing it could help me bowl faster than Jeff Thompson in daily ‘backyard cricket’ test matches.
Four years ago, two Auckland schoolgirls conducting a rudimentary science test burst the bubble. I rang mum to ask what she thought. Now a grandmother, she procures a significant volume of Ribena for nine future Test cricketers and three ballerinas. She is bewildered and disappointed. Lucky for Ribena, my mum gives points for telling the truth.
The cynics will say that the admission of guilt was a legal fudge to limit punitive damages. On the other hand, Ribena admitting wrongdoing can be turned into something powerful and engaging, provided it is a genuine act of contrition with a genuine plan to remedy its ways.
In an age when consumers are in control, they want truth, proof and are more than happy to put your feet under the Bunsen burner to see if you’re telling porkpies.
Glenn Schloss, regional director, Asia-Pacific, corporate communications, Hill & Knowlton
Ribena has long been viewed as almost as important as mother’s milk for children in the markets where it is sold. The perception has its origins in reported distribution of the blackcurrant syrup to British children during World War II as a dietary supplement for Vitamin C.
Just as this legendary, safe-feeling brand has benefited over the generations as a result of caring words and practices passed gently from mother to mother, it is now being tested by a modern, threatening perception — the fallout from the court case in New Zealand, which is spreading at lightning speed across the global media and internet.
When something goes wrong, companies need to act quickly, with a human face and focus on the fix. Consumers will forgive a company if it handles a difficult situation with appropriate concern and responsibility.
Given the brand’s history and emotional appeal, the manufacturers will in the near future need to develop a warm, reassuring integrated advertising, marketing and PR campaign — drawing on its rich heritage and association with caring — to rebuild trust.
As the Chinese characters for crisis tells us, every difficult situation provides an opportunity.
