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Navigating the Storm: Effective Crisis Management in the Social Media Era

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In today’s digital age, the rise of social media has transformed the way individuals and organizations communicate. While social media platforms provide unprecedented opportunities for engagement and brand promotion, they also expose companies to unique challenges, including the potential for crises to escalate rapidly and become public spectacles. Effective crisis management in the social media era has become paramount for businesses and institutions to safeguard their reputation and ensure their survival. This article provides insights into strategies and best practices for successfully navigating crises in the age of social media.

  • Preparation is Key

Effective crisis management begins long before a crisis occurs. Develop a comprehensive crisis management plan that includes key team members’ roles, communication protocols, and escalation procedures. Identify potential crisis scenarios and prepare response templates. Regularly update your plan to reflect changing circumstances and technologies.

  • Monitor and Listen Actively

Social media is often the first place where a crisis emerges. Implement robust social media monitoring tools to track mentions of your brand, products, or services. Actively listen to customer feedback and concerns. Early detection allows for swift response and containment of the crisis.

  • Swift and Transparent Response

When a crisis unfolds on social media, time is of the essence. Craft a swift, yet thoughtful, response that addresses the issue directly. Transparency is paramount. Acknowledge the problem, take responsibility, and outline the steps you’re taking to resolve it. Avoid evasive or defensive language, as it can escalate the situation.

  • Empathetic Engagement

Social media is a two-way street. Engage empathetically with affected customers. Respond to comments, answer questions, and provide updates promptly. Show genuine concern for those impacted, and be prepared to offer support or compensation where appropriate. Your empathy can turn disgruntled customers into loyal advocates.

  • Use Social Media as a Crisis Communication Channel

Leverage your social media channels as primary communication tools during a crisis. Provide regular updates to keep your audience informed and engaged. Use consistent messaging across platforms to avoid confusion. Consider employing live video broadcasts or dedicated crisis response pages to centralize information.

  • Humanize Your Brand

In times of crisis, people connect with people, not faceless corporations. Humanize your brand by putting a real face to your responses. Sign messages with the name of the person handling the social media account. This personal touch conveys authenticity and builds trust.

  • Empower Your Social Media Team

Ensure that your social media team is well-trained and empowered to handle crisis situations. Equip them with clear guidelines, response templates, and decision-making authority. Streamline the approval process to enable rapid responses while maintaining accuracy and compliance.

  • Learn and Adapt

After the storm has passed, it’s crucial to conduct a thorough post-crisis analysis. Assess what went well, what could have been handled differently, and identify areas for improvement. Use these insights to refine your crisis management plan and build resilience for future challenges.

Navigating a crisis in the social media era demands agility, transparency, and empathy. With the potential for issues to escalate rapidly, businesses must be prepared to respond effectively. By proactively monitoring, responding swiftly and transparently, and humanizing your brand, you can weather the storm of a crisis while protecting your brand’s reputation and fostering resilience. Remember, in the social media era, crisis management isn’t just about damage control; it’s an opportunity to demonstrate your commitment to customers and emerge stronger from adversity.

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Starbucks opens world’s most sustainable Coffee Innovation Park in China

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CIP
Spanning 80,000 square meters, the CIP includes a roasting plant, an integrated distribution center (IDC), and an engaging experience center.

Starbucks China has officially opened its Coffee Innovation Park (CIP) located in Kunshan, a city near Shanghai.

The company asserts that this is the world’s most energy-efficient and environmentally sustainable coffee production and distribution facility.

Spanning 80,000 square meters, the CIP includes a roasting plant, an integrated distribution center (IDC), and an engaging experience center.

Starbucks has allocated around 1.5 billion yuan (equivalent to $220 million), marking its most significant investment outside of the United States.

In this facility, Starbucks will import Arabica green coffee beans for purposes such as roasting, packaging, storage, and distribution. Additionally, the site will serve as a platform for showcasing the entire ‘bean-to-cup’ coffee journey to visitors and providing training opportunities.

The newly established center will serve as the primary supplier for all Starbucks outlets in China, employing environmentally friendly methods to blend and roast coffee beans sourced from over 30 countries across the globe, including China.

The coffee company announced its commitment to accelerating production innovation, allowing for the creation of high-quality, locally tailored coffee products. The CIP will leverage automation technologies to oversee more than 90% of its production volume.

The site has incorporated a 34-meter-high fully automated storage and retrieval system, allowing the center to conserve space equivalent to six times that of a standard Starbucks warehouse.

Furthermore, over 26,000 square meters of solar panels will generate energy to fulfill nearly 20% of the center’s power needs, and an impressive 90% of the facility’s waste will be recycled each year.

Starbucks CEO Laxman Narasimhan said, “As one of the largest consumer markets in the world, China presents tremendous opportunities for Starbucks. The Coffee Innovation Park highlights Starbucks’s foresight in elevating the supply chain through digitalisation and advancing our sustainability agenda, enhancing our unique competitive advantage as we accelerate our global growth.

“I couldn’t be prouder of the China team’s visionary thinking. As Starbucks’s largest and fastest-growing international market, we will continue to deepen our investment and reinforce our unwavering long-term commitment to the China market.”

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Myprotein and Keventers unite to delight fitness enthusiasts with butterscotch flavored whey protein

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Keventers Butterscotch flavored whey protein
Keventers Butterscotch flavored whey protein

Myprotein, the leading global online sports nutrition brand, is thrilled to introduce the Keventers Butterscotch flavored whey protein exclusively for its valued customers in India. This exciting addition of the Butterscotch flavor is designed to meet the unique needs of the fitness community in India, offering them the perfect blend of nutrition and nostalgia to help them achieve their personal fitness goals.

The newly launched Keventers Butterscotch Flavored Whey Protein blends cherished memories with health-conscious choices. Its tagline, “Memories in Every Scoop – Relive Sweetness, Healthily!” beautifully captures the essence of this innovative product. Furthermore, with a guilt-free protein treat that packs a whopping 23 grams of high-quality protein per scoop, this flavorful alternative empowers individuals to achieve their nutritional goals without sacrificing taste.

Sanya Chhabra, Regional Marketing Manager, Myprotein Emerging Markets, said, “We are excited to introduce the Keventers Butterscotch Flavoured Whey Protein to our Indian customers. Myprotein’s collaboration with Keventers underscores a commitment to innovation and customer satisfaction. By combining Myprotein’s expertise in sports nutrition with Keventers’ legacy of taste, the new whey protein flavour will exemplify a harmonious blend of sensory pleasure and dietary purpose.”

Agastya Dalmia, Founder and CEO, Keventers, said, “We’re delighted to partner with Myprotein for the launch of Keventers Butterscotch Flavoured Whey Protein in India. This collaboration will beautifully blend the sweetness of nostalgia with the goodness of nutrition, delivering a delightful path towards fitness goals.”

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Hershey appoints Deepak Bhatia as CTO to drive tech innovation and enhance supply chain

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Deepak Bhatia
Deepak Bhatia

In a significant development, Deepak Bhatia has been appointed Chief Technology Officer at The Hershey Co., with his new role set to commence on October 23. Furthermore, he has been granted a position on the company’s executive committee.

Mr. Bhatia brings a wealth of experience to his new role, having spent the last 12 years at Amazon, where he held the position of Vice President for Supply Chain Optimization Technologies since August 2021. Prior to his tenure at Amazon, he served in several senior management roles at Applied Materials. His career began as an engineer and team lead at Daewoo Motors India Ltd.

He earned his bachelor’s degree in mechanical engineering from Punjab Engineering College, followed by a master’s degree in aeronautics and astronautics engineering from Purdue University. He further pursued a master’s degree in operations research, management science, and engineering at Stanford University.

“We are investing in our people and digital capabilities to strengthen our infrastructure and scale across our growing supply chain and business units,” said Michele Buck, president and chief executive officer of Hershey. “As we continue to double down in this area, Deepak has the expertise needed to successfully lead our technology strategy leveraging end-to-end data, analytics and automation to elevate our employee experience, create commercial value and advance our leading snacking powerhouse vision.”

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Tim Hortons targets UK growth with new franchise strategy

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Tim Hortons
Tim Hortons (Representative Image)

Tim Hortons, the Canadian restaurant chain, has announced its intention to implement a fresh franchise model as part of its strategy to expand its footprint within the United Kingdom.

As reported by The Retail Bulletin, Tim Hortons entered the UK market in 2017 with its first outlet in Glasgow. Currently, the restaurant chain operates a portfolio of 75 outlets, with 31 of them reportedly opening just last year.

The coffeehouse features a range of menu options, including its distinctive coffee, iced cappuccinos, breakfast selections, custom-made sandwiches, doughnuts, and Timbits.

After conducting five years of testing and gaining valuable insights, the company has unveiled a novel franchise model. This model is designed to assist franchisees in establishing and launching Tim Hortons outlets, including drive-throughs and high street restaurants.

Utilizing this model, the company anticipates a yearly addition of approximately 20 to 25 new stores in the country.

Tim Hortons UK chief commercial officer Kevin Hydes said, “We want to take Tim Hortons to more local communities across the nation at pace and we’re confident that our franchise model will be core to us achieving this goal.

“We continue to see high consumer demand for the brand, with every opening exceeding commercial expectations, so we are confident that our strong market position – being the third largest coffee brand in the world – and our unique customer proposition of a beverage led, quick service restaurant will be of huge interest and will provide commercial value to our franchise partners.”

Tim Hortons was founded in 1964 and presently runs a network of over 5,600 outlets worldwide. Of its 3,802 stores within Canada, more than 1,500 are operated as franchises.

In addition to the UK, the company is actively pursuing expansion opportunities in countries like China, India, the United Arab Emirates (UAE), and Mexico.

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Haldiram’s takes dining to new heights with train-themed restaurant in Vijayawada

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Haldiram
The restaurant offers a diverse menu featuring 126 delicacies from various regions of the country.

Haldiram’s, well-known for crafting traditional snacks and sweets, launched its first establishment in Andhra Pradesh, ‘Haldiram’s on Wheels,’ situated within the Vijayawada railway station premises on September 19th (Tuesday).

Following Nagpur, Vijayawada becomes the second Indian city to host a train-themed restaurant by Haldiram’s.

Haldiram’s chairman, Shiv Kishan Agarwal, and the Divisional Railway Manager (Vijayawada) of South Central Railway (SCR), Narendra A. Patil, jointly inaugurated the restaurant, designed to emulate the ambiance of a luxury express train.

According to G. Mangesh, the Manager (Operations) for Haldiram’s in Andhra Pradesh and Telangana, the coach’s interior can accommodate 46 guests, while the exterior space can accommodate up to 64.

“We are planning five more such train coach-themed restaurants in the country, with Mumbai getting three of them,” said Mr. Mangesh, adding that the restaurant of this style had been a hit among the food lovers in Nagpur.

“Vijayawada will get three more outlets soon. We are in the process of finalising the locations,” said Mr. Mangesh.

The restaurant offers a diverse menu featuring 126 delicacies from various regions of the country, all centered around Haldiram’s ‘India Ka Swaad’ concept. Additionally, you can savor a selection of fusion dishes that cleverly blend traditional flavors with a modern twist, along with a delightful assortment of sweets.

The restaurant operates 24/7, and you can conveniently order food online through popular platforms like Swiggy, Zomato, and IRCTC Catering.

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New Zealand’s A2 Milk and Synlait locked in dispute over contract termination

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A2 Baby formula
A2 Baby formula

Conflict has erupted between New Zealand-based A2 Milk and Synlait, major players in the milk and infant-formula industry, following A2 Milk’s decision to terminate a longstanding exclusive supply contract.

Synlait serves as a provider of dairy, infant-formula products, and ingredients to A2 Milk. However, on Sunday, September 17th, A2 Milk made an announcement through a statement on the New Zealand stock exchange (NZX) that it had issued a written notice to Synlait, terminating the exclusive manufacturing and supply privileges that Synlait had previously held. These privileges encompassed the production of stages 1 to 3 of A2’s infant-formula products intended for sale in China, Australia, and New Zealand.

A2 Milk, holding the second-largest stake in Synlait at 19.8%, stated that it terminated the exclusive agreement because Synlait’s performance in delivering products in full and on time during FY23 fell below the threshold necessary for maintaining such exclusive rights.

However, it said “Synlait remains an important supplier”.

Yesterday, Synlait responded. In a stock-exchange filing, it said, “Synlait disputes that The A2 Milk Company has the right to cancel the exclusivity arrangements.”

A2 Milk has confirmed that, in practice, Synlait will continue to enjoy exclusivity until the matter is resolved. The contract includes a 20-day dispute resolution process, and if the issue remains unresolved after this period, arbitration proceedings will be initiated.

Synlait additionally highlighted its possession of the Chinese regulatory State Administration for Market Regulation (SAMR) license, which pertains to its Dunsandel manufacturing facility and encompasses A2 Milk products. Synlait anticipates continuing the production of these products for the Chinese market until the license’s expiration in September 2027.

Local media reports have proposed that by discontinuing Synlait’s exclusive agreement, A2 Milk could potentially make use of the specialized dairy nutritionals facility, Mataura Valley Milk. This facility is jointly owned with China Animal Husbandry and has been operating at a loss.

The Nutritional Powders Manufacturing and Supply Agreement (NPMSA) between A2 Milk and Synlait will continue under a rolling term, as it can only be terminated by either party with a three-year notice period.

In its statement to the NZX, Synlait also informed the market about the successful completion of its bank refinancing, welcoming new members to its banking syndicate, including ANZ, Bank of China, China Construction Bank, HSBC, and Rabobank. As a result, the company has secured a working capital facility amounting to NZ$240 million (approximately $142.5 million) and revolving credit facilities of NZ$230 million.

Furthermore, it reaffirmed its net profit guidance for the full year of 2023, which spans from a net loss of NZ$5 million to a net profit of NZ$5 million. The company emphasized that A2 Milk’s announcement would not affect its performance for the fiscal year 2023.

The group is scheduled to unveil its full-year 2023 results on Monday, September 25th.

Back in April, A2 Milk expressed surprise at Synlait’s profit warning, where Synlait cautioned investors about a potential net loss of NZ$5 million, contrasting sharply with its earlier projection of an annual net profit after tax ranging from NZ$15 million to NZ$25 million.

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International Dairy Investment buys 24.61% stake in Domty

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Domty
Domty (Representative Image)

The International Dairy Investment Company has acquired 69.55 million shares of Arabian Food Industries, thereby securing a 24.61% ownership interest.

Arabian Food Industries, recognized by its flagship brand Domty, operates in Egypt, producing a variety of branded white and processed cheeses, as well as juice products.

The deal, with a total worth of approximately $14.39 million (EGP 445.84 million), was executed at an average share price of EGP 6.41.

The El-Damaty family sold all of their shares in Domty to the International Dairy Investment Company as part of this acquisition.

Last week, the Egyptian investment firm EFG Holding facilitated the transaction.

During 2021, FrieslandCampina and the Arabian Food Industries Company reached an agreement to establish a fresh joint venture dedicated to exporting cheese to Africa and the Middle East. In this new partnership, FrieslandCampina and Domty held ownership stakes of 51% and 49%, respectively.

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Absolut Vodka unveils new flavor explosion with ‘Nordic Spice’

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Nordic Spice
Nordic Spice

Absolut Vodka has broadened its Absolut Nights shot collection by introducing its second offering, known as Nordic Spice.

Drawing inspiration from Nordic spices, the fresh spirit offers an invigorating vodka experience that seamlessly blends the warmth of green cardamom, the zest of ginger, and the crispness of apple. The result is a velvety libation with nuanced fruity notes and a tantalizing hint of spiciness.

Absolut suggests enjoying this 35% ABV beverage chilled and undiluted, accompanied by either a side of ginger ale or a refreshing apple juice.

The fresh flavor is presented in a unique 700ml glass bottle in vibrant electric green, thoughtfully designed to encapsulate the essence of the nighttime urban streets in the Nordics.

The brand emphasizes that this new range represents a bold continuation of its enduring dedication to offering fresh and innovative ways to savor the iconic flavors of Absolut.

Nancy Baghdadi, director for product portfolio and innovation at The Absolut Group, said, “The night out has always been Absolut Vodka’s heartland, but today’s generation of partygoers have an appetite for bolder flavours and innovative drinks. Absolut Nights Nordic Spice, like our first drink in the new shot range, Absolut Nights Smoky Piña, was another opportunity for us to tap into local culture through urban mixes with global appeal.”

She continued, “Influenced by spices used in the Nordics, this fresh, spicy and smooth shot will excite existing Absolut fans and open a door to attract a new generation of consumers. We are continually looking to push the boundaries with daring and unique flavours in response to the tastes our consumers want. We’re confident this well-balanced juicy shot with a spicy kick will do just the trick.”

Absolut Nights Nordic Spice will launch in China this month, with globally rollout from January 2024.

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Instacart Co-Founder Apoorva Mehta steps down from board post-IPO, retains largest share with $1.1 Billion fortune

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Apoorva Mehta
Apoorva Mehta

Instacart’s Co-Founder, Apoorva Mehta, is checking out with a significant $1.1 billion fortune following the grocery-delivery company’s initial public offering.

Read More: Grocery delivery service Instacart aims to secure $616M in public offering

Also Read: Instacart’s revenue soars by 31% as it prepares for highly anticipated IPO

Mehta had checked out as the CEO of the company in August 2021 and gave up his board position as executive chairman as a component of the IPO process, transferring leadership to the current CEO, Fidji Simo, a former executive at Meta Platforms. Mehta had been one of the co-founders of the company back in 2012.

Over the past decade, this startup has evolved from resembling a Webvan clone into becoming the largest grocery-delivery enterprise in the United States. During the six months ending on June 30, revenue witnessed a robust 31 percent increase, reaching approximately $1.5 billion. This remarkable growth was, in part, fueled by a strategic shift towards a more profitable advertising business model.

In March 2021, at the height of its pandemic-driven surge, venture capitalists appraised the company’s worth at an impressive $39 billion. At its zenith, Apoorva Mehta’s 10 percent ownership stake had already elevated him to billionaire status, with a peak fortune of $3.5 billion. However, as viral infections waned and inflation rates surged, the San Francisco-based company encountered challenges. Over the course of the past year, it revised its internal valuation three times, ultimately settling at around $13 billion in October.

Maplebear Inc., the parent company of Instacart, established its IPO price at $30 per share on Monday, resulting in a valuation of $9.9 billion. On Tuesday, when trading commenced in New York, the stock surged by over 40 percent, eventually closing at $33.70.

“What matters is how Instacart performs over the next few years, rather than what it means on day one,” Mehta said in a telephone interview after the stock began trading. “We focus more on the long-term and that’s what we’re excited about.”

Apoorva Mehta’s wealth amounts to $1.1 billion, encompassing his 10 percent ownership in Instacart and an interest in his recently founded venture, Cloud Health Systems. Cloud Health Systems, where Mehta serves as CEO, is dedicated to tackling chronic illnesses. The health-tech startup has successfully secured $42 million in funding from investors like Thrive Capital, Andreessen Horowitz, and General Catalyst. Notably, in a financing round held in November 2022, the startup was valued at $200 million.

In the offering, Mehta offloaded stocks amounting to $21 million; however, based on the amended registration filing, he will retain his position as Instacart’s primary individual shareholder. Venture capital firms Sequoia Capital and D1 Capital Partners possess larger ownership stakes at 14 percent and 13 percent, respectively, excluding any potential additional shares they might acquire during the IPO. Instacart’s other co-founders, Brandon Leonardo and Maxwell Mullen, each possess a 2 percent stake.

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