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Crisis Analysis: ABP Food Group By: Jordan Zapalac.

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Presentation on theme: "Crisis Analysis: ABP Food Group By: Jordan Zapalac."— Presentation transcript:

1 Crisis Analysis: ABP Food Group By: Jordan Zapalac

2 Background Founded: ABP was founded by Larry Goodman. Larry Goodman started in the meat processing business back in 1954. ABP was founded by Larry Goodman. Larry Goodman started in the meat processing business back in 1954. The current CEO as of June 2008 is Paul Finnerty. The current CEO as of June 2008 is Paul Finnerty.

3 About ABP is one of Europe's leading privately owned food processors. ABP is one of Europe's leading privately owned food processors. Their business spreads from Ireland and the United Kingdom Their business spreads from Ireland and the United Kingdom They have about 8,000 employees and produce 2.3 billion Euros in turnover They have about 8,000 employees and produce 2.3 billion Euros in turnover

4 About cont. ABP consists of 4 divisions ABP consists of 4 divisions 1. ABP Beef 2. ABP Proteins 3. ABP Pet Food 4. ABP Renewables/Olleco

5 CRISIS In 2013 there was a mass meat productions scandal all throughout Europe. Food that was advertised as containing beef actually was found to contain horsemeat and horse DNA In 2013 there was a mass meat productions scandal all throughout Europe. Food that was advertised as containing beef actually was found to contain horsemeat and horse DNA ABP played victim and released a statement that it bought the meet in good faith from a company called Silvercrest and was unaware that it was contaminated with horse DNA ABP played victim and released a statement that it bought the meet in good faith from a company called Silvercrest and was unaware that it was contaminated with horse DNA

6 CRISIS The hamburger meat that was bought from Silvercrest foods was found to have 29 percent horsemeat in them The hamburger meat that was bought from Silvercrest foods was found to have 29 percent horsemeat in them Martin McAdam, of McAdam food products, is suing ABP citing alleged defemation and loss of business Martin McAdam, of McAdam food products, is suing ABP citing alleged defemation and loss of business He claims that ABP was looking for someone to blame in order to take the attention off of themselves in the middle of the media frenzy He claims that ABP was looking for someone to blame in order to take the attention off of themselves in the middle of the media frenzy

7 Verbal Response ABP released statements through its CEO, Paul Finnerty, and played the victim card throughout the scandal. ABP released statements through its CEO, Paul Finnerty, and played the victim card throughout the scandal. Throughout the entire scandal they kept this strategy and did not make many comments besides saying that they were completely unaware that the products had horse meat in them. Throughout the entire scandal they kept this strategy and did not make many comments besides saying that they were completely unaware that the products had horse meat in them.

8 Statement “ ABP Food Group confirms that Silvercrest purchased beef products from McAdams Food Service (circa 170t out of total beef purchases in 2012 of 18,000t). It now appears that, while Silvercrest purchased these beef products in good faith, horse DNA originating in Poland was present in some of these products.” “ ABP Food Group confirms that Silvercrest purchased beef products from McAdams Food Service (circa 170t out of total beef purchases in 2012 of 18,000t). It now appears that, while Silvercrest purchased these beef products in good faith, horse DNA originating in Poland was present in some of these products.”

9 Media Response Most of the information I found was through online European publications such as The Guardian, The Grocer, and Independent.ie Most of the information I found was through online European publications such as The Guardian, The Grocer, and Independent.ie Many online websites started publishing many negative stories surrounding ABP including sharing other scandals they are involved in Many online websites started publishing many negative stories surrounding ABP including sharing other scandals they are involved in

10 Stakeholders Response Many consumers lost trust in ABP Many consumers lost trust in ABP Many consumers were offended by a tweet that was sent out from Tesco (a supermarket that is connected to and sells ABP meats) Many consumers were offended by a tweet that was sent out from Tesco (a supermarket that is connected to and sells ABP meats) The tweet read: “It’s sleepy time so we are off to hit the hay! See you at 8 AM for more #TescoTweets” The tweet read: “It’s sleepy time so we are off to hit the hay! See you at 8 AM for more #TescoTweets” This caused consumers to be angry because they thought the company wasn’t taking it seriously This caused consumers to be angry because they thought the company wasn’t taking it seriously

11 Recommendations Future recommendations for a company like ABP would to not play the blame game as much as they did and to take some responsibility for their actions Future recommendations for a company like ABP would to not play the blame game as much as they did and to take some responsibility for their actions ABP should test all of it’s products before they attach their name to them ABP should test all of it’s products before they attach their name to them ABP should bring all of it’s meat processing in house instead of using other companies ABP should bring all of it’s meat processing in house instead of using other companies


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