A Case Study in Crisis Management: The Perrier Recall

Abstract

In February 1990, French‐based Perrier voluntarily recalled 70 million bottles of water products after detecting abnormal traces of benzene. In addition to management problems associated with regulators, a scrutinising press and the consuming public, this industrial crisis led to at least $40 million in lost sales. The stock value of Perrier also declined markedly due to the recall. Company officials acted quickly to contain the damage by launching a public relations campaign; however, residual damage in retail and restaurant sales persist.