PepsiCo’s Digital Crisis Management in 2024

In October 2024, PepsiCo faced a significant digital marketing crisis when its popular snack brand, Lay’s, was linked to a food safety scare. Multiple consumers in Europe reported mild health issues after consuming certain Lay’s products, leading to a rapid spread of concern across social media platforms. Within hours, hashtags like #LaysRecall and #SnackSafe began trending on Twitter/X and TikTok, sparking widespread debate and speculation.

The speed at which the story escalated showcased the power, and volatility of digital platforms in shaping public opinion. Initially, PepsiCo was criticised for what some users perceived as a slow response. However, within 24 hours, the company launched a coordinated digital crisis management strategy. They posted a formal statement across their owned platforms, including Twitter, Instagram, LinkedIn, and their corporate site, acknowledging the issue and expressing sincere concern for affected consumers. The tone was calm, empathetic, and factual, aimed at calming fears and reinforcing brand accountability.

PepsiCo immediately initiated a voluntary recall of the specific Lay’s batches suspected to be linked to the issue. They updated customers regularly through social media, email newsletters, and customer service chatbots, explaining the measures being taken. In addition, they collaborated closely with public health agencies across the affected regions, reinforcing that consumer safety was the top priority. This transparency helped shift the conversation from outrage to understanding.

A dedicated online portal was set up to provide FAQs, refund forms, and daily investigation updates. Digital listening tools were also deployed to track sentiment in real time, allowing the brand to adapt its messaging and address misinformation quickly. Influencers and brand ambassadors who had worked with Lay’s were briefed privately and asked to pause any promotions until the matter was resolved, showing strategic control over affiliate channels.

Despite the initial backlash, PepsiCo’s open and timely communication helped it recover consumer trust. The crisis also prompted them to review and strengthen their digital crisis response protocols, including tighter supply chain communication, improved monitoring systems, and better escalation workflows across regions.

This case serves as a critical example for learners of how digital marketing crises can quickly unfold, and the importance of being prepared. The impact wasn’t just reputational; PepsiCo saw a short-term dip in sales and share price, highlighting the financial stakes of digital perception. However, by responding with transparency, empathy, and structure, they demonstrated how a global brand can weather a storm, restore trust, and future-proof its digital strategy.

Click here to see the company announcement: Frito-Lay Issues Limited Recall on Undeclared Milk in Lay’s Classic Potato Chips Distributed in Oregon and Washington