We’re taking you way back in the wayback machine to when I was a little kid in Canada. It was 1991 when Winnipeg-based Old Dutch Foods entered the Ontario market hoping to gain ground but instead faced a salty standoff. Rival Hostess Frito-Lay was accused of buying all the Old Dutch chips from store shelves, sometimes at full price, and pressuring retailers not to restock them. An Old Dutch rep said it happened in all 100 stores he worked with.
Hostess admitted to some buyouts but claimed they were at the request of retailers wanting to clear space. Old Dutch filed a complaint, prompting a federal investigation. Once Hostess ceased the behavior (or at least claimed to), the government determined that there was no ongoing violation, and therefore no grounds for further legal action. Still, the incident left a bad taste for many and chipped away at the brand’s image over time (puns intended). Meanwhile, Old Dutch held its ground and grew into a favorite in Canadian snack aisles.
At the time, bad press had a limited but intense shelf life. Stories might air once or twice on TV or appear in a single newspaper column before fading from public attention but the flip side was that everyone watched the same three channels and read the same newspapers. Whether a brand was caught using questionable tactics or positioned as the victim, public memory was short but the impact was intense.
Today, however, that kind of corporate controversy would likely play out very differently. With social media, 24-hour digital news cycles, and online communities, a story like this could go viral within hours and resurface for years. As we’ve recently discussed, a single incident can permanently impact public perception, market trust, and brand loyalty. Again, the flip side is that algorithms ensure that coverage is diluted and, unless it catches fire, someone may not see it.
But what if you’re the one being attacked? If you’re the victim of an unfair competitive scheme today, your response needs to reflect that reality. If you’re Old Dutch instead of Hostess, you can take advantage of the very things that often damage corporate reputations. Clear communications to stakeholders, social media campaigns, proactive media outreach, and filing formal complaints can help you stay resilient against short-term sabotage and position your brand for long-term success.
Here are a few thought starters you can discuss at your next team meeting to help your leaders and team see whether your business is ready to handle a crisis:
Discussion Questions:
- How would a situation like this play out differently today?
- What would you do if your organization fell victim to an unfair business practice?
- What would you do if you found out that your organization was playing dirty ball?
- How might you strategically engage the media to your advantage?
- What key messages would you use to win public opinion over to your side?
P.S. Bonus points to anyone who emails me with the answer to this: What is the most popular potato chip flavor in Canada?
Kith facilitates crisis preparedness workshops that will help your company attain the clarity, trust, and speed you need to respond confidently – no dithering! – to any crisis. We’d be happy to have a conversation about how we can help your company be ready to chart an effective course to reputation protection.
Looking for more fresh insights? Crisis of the Month is a no-fluff Substack that breaks down real-world crises and what they teach us about leadership, communication, and damage control. Whether you’re in comms, ops, or just crisis-curious, this is your monthly guide to what went wrong — and how to do it better. Sign up today!
