Learnt about the fascinating comeback of Maggi Noodles in India today.

Many of u may remember the ban on Maggi in May '15 on account of high lead content. I for sure thought it was the end for the brand. 6 years later, it's back at the top.

Here's how the turnaround happened.
Nestle's initial response -- that the regulator's testing processes might have been incorrect -- dug a deeper hole for the company.

Nestle came across as aloof, insensitive, and projected itself as a company that was willing to poison people and have the gall to defend itself.
Nestle retracted and re-constituted a new game plan (that ended up working!)

1) It avoided challenging the regulator head-on by pulling the product off the shelves. This helped get the regulator to stop breathing down the company's neck in a battle it would have undoubtedly lost
2) It then told the public "hey we know we are absolutely safe, but for the time being we will comply with regulations and convince the regulators to let us start selling again" nestle.in/media/pressrel…
3) The company tested its products and samples around the world, including in India, to ensure it was absolutely safe to consume. With the internal conviction that it was not in the wrong, and had not run afoul of food safety standards, it undertook steps 4 & 5 below in parallel.
4) In August '15, Nestle took the Indian food safety regulator to the Bombay High Court making the case that the regulator acted arbitrarily and that its product was in fact safe to consume. indiankanoon.org/doc/66718388/?…
5) Nestle then began building PR momentum by launching the #WeMissYouToo ad campaign (w/o mentioning Maggi or showing the product in these ads to comply with the ban that was still in place while the case was sub-judice.) Example --
In August itself, the High Court ruled in Nestle's favor and allowed the company to relaunch Maggi after conducting Court-specified food quality tests. legallyindia.com/the-bench-and-…

By Oct, '15 the company cleared these tests, and by Nov '15, Maggi was back on Indian store shelves.
And so finally 6) to regain consumer trust and to build on the positive PR it generated through its #WeMissYouToo campaign and the win at the Bombay HC, the company launched its #WelcomeBackMaggi campaign. Example --
By the end of the year in 2015, it recovered consumer trust, and over the last 5 years has steadily regained complete dominance in the instant noodles market in the country. If any one of these steps above had been mismanaged, it was game over for Maggi in 🇮🇳
Most of us have forgotten this crisis ever even took place. Maggi continues to be India's favorite staple to this day (I had some last week!) /FIN

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More from @anand108

29 Dec 20
1/ A thread on the mammoth M&A transaction that took place b/w United Technologies and Raytheon (announced in June 2019 and completed in April 2020).

Was this large M&A value accretive to investors? Did diversification help spread risks? Let's explore

2/ In June 2019, United Technologies announced a "merger of equals" with Raytheon worth ~$91B in Enterprise Value. The rationale was that both companies had broadly complementary product and service offerings. United catered to commercial customers and Raytheon to defense.
3/ Additionally, there were cost savings worth $1B/year to be realized (half of which would be passed on to customers).

All in all, the merged entity would become more diversified and resilient to business cycles.
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