In 1992, Pepsi launched a promotional contest in the Philippines called Number Fever.
Participants would win 1 million pesos if they had a bottle cap with the winning number announced on the news.
A million pesos was a life-changing amount for many Filipinos, making the contest extremely popular.
Contest Mechanics
Pepsi controlled the number of winners using a computer program to seed winning caps.
Initially, only two winners per drawing were planned to maintain budget control.
Contest Extension and Glitch
Due to the contest's popularity, Pepsi extended it by 5 weeks.
A computer glitch resulted in the announcement of number 349 as the winner on May 25, 1992.
349 was erroneously designated as a non-winning number, leading to over 600,000 caps with that number in circulation.
Immediate Aftermath
Chaos ensued as hundreds of thousands believed they won.
Pepsi offered only 500 pesos (around $8) per winning cap as compensation, far below the promised prize.
This offer was largely rejected, leading to outrage and protests.
Riots and Legal Action
Violent protests and riots ensued, resulting in five deaths and multiple injuries.
Coalition 349 was formed by the affected participants to take legal action against Pepsi.
Coalition 349 was led by Del Fiero and aimed to sue Pepsi for $400 million.
Allegations of Sabotage
Accusations arose that Pepsi hired mercenaries to incite violence to discredit Coalition 349.
Pepsi denied these allegations.
Legal Outcomes
In 1993, arrest warrants were issued for nine Pepsi Executives.
Most legal actions were dismissed over time.
In 2006, courts concluded Pepsi was not negligent, resulting in only a 150,000 pesos fine for the company.
Long-term Impact
Many Filipinos remain traumatized by the incident.
Pepsi's reputation suffered significantly in the Philippines.
Pepsi issued a statement expressing regret for the events.
Conclusion
The Number Fever disaster is a notable example of a promotional campaign gone wrong, with lasting impacts on both the community and the company's standing.