CPG Brands and Their Struggles with Public Relations: A Critical Analysis of Missed Opportunities

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Consumer Packaged Goods (CPG) brands have long been at the heart of everyday consumer experiences, providing products ranging from food and beverages to personal care and household items. Despite the central role these products play in people’s lives, many CPG brands have struggled to effectively manage their public relations (PR), resulting in missteps that undermine theirreputations and consumer trust. This failure in PR is particularly problematic for CPG brands, which rely heavily on brandperception, consumer loyalty, and the ability to influence purchasing decisions. In this op-ed, we will explore the reasons why many CPG brands are failing at PR, examine examples of poor CPG Public Relations execution, and propose strategies that these brandscan adopt to improve their PR and better align with the expectations of modern consumers.

The Changing Landscape of Consumer Expectations

In today’s media environment, the lines between traditional advertising and public relations are increasingly blurred. Consumers no longer simply trust brands based on their advertising messages; they rely heavily on third-party opinions, reviews, and social mediacontent to form their opinions. In this age of digital transparency and heightened social consciousness, CPG brands must understand that their PR strategies are under more scrutiny than ever. The modern consumer is savvy and has access to vast amounts of information at the touch of a button. They expect brands to not only provide quality products but also engage with them authentically, ethically, and responsibly.

Consumers are also increasingly concerned with issues such as sustainability, corporate ethics, social justice, and inclusivity. These concerns are amplified by social media, where news—whether positive or negative—spreads rapidly. Brands that fail to acknowledge and address these concerns risk alienating a large segment of their customer base. Thus, a CPG brand’s PR efforts must go beyond responding to crises; they must proactively build trust and credibility with consumers through authentic, transparent, and responsible communications.

The Problem: Poorly Executed PR Strategies

Unfortunately, many CPG brands fail to grasp the full importance of PR, often leaving it as an afterthought or relegating it to the role of damage control rather than relationship building. When these brands encounter a crisis or a reputational issue, their PR response is often reactive, misguided, or overly focused on minimizing damage rather than fostering a constructive dialogue with the public.

1. Lack of Transparency

One of the most common failures in PR for CPG brands is a lack of transparency, especially regarding their products, sourcing, andsustainability practices. Brands often try to avoid difficult conversations, only to find that their failure to be transparent causes abigger problem in the long run. When issues arise—such as a product recall, allegations of unethical sourcing, or questions about labor practices—brands that are not forthcoming with information will inevitably find themselves at odds with the very consumers they are trying to serve.

For instance, Nestlé, one of the world’s largest food and beverage companies, has repeatedly faced backlash over its handling ofwater sourcing and labor practices. When Nestlé was accused of exploiting water resources in California, the brand was criticized for its lack of transparency about how much water it was extracting and where it was being sold. Rather than addressing the concerns head-on, Nestlé’s response was defensive, which only fueled further criticism. Instead of proactively engaging withenvironmental advocates and providing clarity, the company’s PR strategy appeared to prioritize self-preservation over taking responsibility and promoting meaningful change.

2. Failure to Align with Social Values

Today’s consumers are deeply invested in the social values of the brands they purchase from. Millennials, in particular, are more likely to purchase from brands that align with their personal values, whether that’s sustainability, racial equality, or fair labor practices. When a brand fails to communicate its commitment to these values authentically or worse, engages in actions that contradict these values, it can quickly find itself embroiled in controversy.

A notable example of this misalignment was Pepsi’s infamous 2017 commercial, which featured Kendall Jenner in a protest scene, seemingly solving social justice issues by handing a can of Pepsi to a police officer. The ad was widely criticized for trivializing the Black Lives Matter movement and turning a serious issue into a marketing opportunity. Rather than using its PR to apologize andengage in a deeper conversation about how the brand was addressing social issues, Pepsi doubled down, which only led to more backlash. This failure to understand the importance of aligning with social values resulted in a PR disaster that tarnished Pepsi’s reputation for years.

3. Inability to Respond Quickly to Crisis Situations

Another significant issue with PR in many CPG brands is their inability to respond swiftly and effectively when a crisis occurs. In the age of social media, news travels fast, and a delay in addressing an issue can exacerbate the problem. The longer a brand waits to respond to an issue, the greater the chance that negative narratives will spread.

Johnson & Johnson, for instance, faced a major crisis in the 1980s with the Tylenol poisoning incident. The company quickly responded by recalling 31 million bottles of Tylenol, and their PR team worked tirelessly to communicate with the public. Johnson & Johnson’s swift, transparent, and consumer-first approach to handling the crisis allowed the brand to recover its reputation. While the Tylenol case is often cited as a textbook example of effective crisis management, many CPG brands today fail to take a similar approach. Instead of acting quickly and openly, brands often bury their heads in the sand, hoping the issue will go away, only to see it snowball into a full-fledged crisis.

In contrast, Chipotle struggled for months with a series of food safety incidents, including E. coli and norovirus outbreaks. Despite its attempts to resolve the issue, the company’s slow response and lack of transparency allowed the media to fill in the gaps withnegative coverage. Chipotle’s PR team failed to effectively communicate the brand’s actions to address the crisis, which ultimately led to a significant drop in sales and consumer trust.

4. Failure to Adapt to Social Media Culture

In today’s world, social media is an essential component of any PR strategy. Platforms like Twitter, Instagram, and TikTok have become critical channels for brands to engage with consumers, share updates, and respond to issues. Yet, many CPG brands still fail to adapt to the fast-paced, informal, and sometimes irreverent nature of social media, which can hurt their PR efforts.

Burger King’s 2021 Twitter incident serves as a perfect example of a CPG brand mishandling a social media interaction. The brand’s account posted an insensitive tweet promoting its “women belong in the kitchen” campaign, which was a poor attempt to highlight gender inequality in the culinary industry. Instead of generating constructive dialogue, the tweet backfired, causing significant backlash for its tone-deaf approach. While the intention behind the message might have been to spark awareness around a critical issue, Burger King’s failure to understand the nature of social media humor and its audience’s expectations led to widespread criticism.

Brands that fail to adapt to the cultural nuances of social media often miss opportunities to build relationships with consumers. They end up appearing out of touch or dismissive, rather than engaging in meaningful conversations.

5. Ignoring the Power of Influencer Engagement

Another area where many CPG brands falter in PR is their underutilization of influencers and brand ambassadors to authentically promote their products. While big-budget advertising campaigns are still important, consumers today are more likely to trust an influencer’s opinion than they are a traditional ad. CPG brands often miss the opportunity to tap into the power of influencer marketing, especially when their PR teams fail to work collaboratively with influencers who align with their brand values.

Procter & Gamble is a company that has struggled at times with influencer engagement, particularly when launching new products. Despite their vast marketing budgets, they have sometimes failed to recognize the importance of partnering with authentic influencers who can connect with niche communities. This has led to missed opportunities to tap into more engaged consumer groups and build a stronger, more loyal fan base.

The Consequences: Loss of Trust and Consumer Loyalty

The consequences of poor PR for CPG brands can be severe and long-lasting. A single PR misstep can damage a brand’s reputation, erode consumer trust, and ultimately lead to a loss of market share. In an era where consumers are increasingly loyal to brands that align with their values and demonstrate social responsibility, PR failures can result in a complete reversal of brand perception.

The lack of effective PR strategies and poor responses to crises often translate into weakened consumer loyalty. As consumers become more vocal on social media and online forums, negative sentiment spreads faster, making it harder for brands to recover from PR disasters. Without a strong, authentic, and transparent PR strategy, CPG brands risk alienating their core customers andlosing valuable market positioning.

Recommendations for Improvement

  1. Embrace Transparency and Authenticity: Brands should prioritize openness in all aspects of their operations. This includes everything from how products are sourced and manufactured to how they handle social and environmental issues. Consumers expect transparency, and brands that meet this demand can strengthen their relationship with their audience.
  2. Align with Consumer Values: CPG brands must take an active role in social issues and ensure their values align with the expectations of their consumers. Whether it’s sustainability, gender equality, or racial justice, brands need to demonstrate agenuine commitment to causes that matter to their audience.
  3. Be Proactive in Crisis Communication: Waiting for a crisis to escalate before addressing it is a major PR mistake. CPGbrands should have crisis communication plans in place, ensuring that they can respond quickly, openly, and empathetically when problems arise.
  4. Leverage Social Media Effectively: Social media is a vital tool for engaging with consumers. Brands must understand the nature of each platform and tailor their messaging accordingly. They should also be prepared to engage in real-time, responding to both positive and negative feedback with authenticity.
  5. Collaborate with Influencers: CPG brands should develop long-term relationships with influencers who genuinely resonate with their target audiences. These influencers can be powerful allies in shaping public opinion and amplifying the brand’s values.

PR is an essential component of any CPG brand’s strategy. With the rise of social media and heightened consumer expectations, brands must be proactive in building strong, transparent relationships with their audience. The failures discussed above show that CPG brands need to reassess their approach to public relations, moving beyond reactive crisis management to proactive brand stewardship. The future of PR lies in authenticity, alignment with social values, and a willingness to engage with consumers on a deeper level. Only by mastering these principles can CPG brands hope to maintain consumer trust, protect their reputation, and thrive in an increasingly competitive and transparent marketplace.

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