Pepsi's Number Fever Contest in the Philippines (1992)
Overview
In 1992, Pepsi ran a promotional contest in the Philippines called "Number Fever."
Participants could win a million pesos if their Pepsi bottle cap matched the winning number announced on the news.
The contest became extremely popular, with half the country's population participating.
Initial Success
Due to its popularity, Pepsi extended the contest by 5 weeks.
The company controlled the number of winners through a computer program, designing two winning caps per number.
The Mistake
On May 25, 1992, a computer glitch led to the wrong number, 349, being declared as the winner.
Over 600,000 bottle caps had the number 349, leading to hundreds of thousands of "winners."
The Aftermath
The streets filled with joy and chaos as people believed they had won.
Pepsi’s factory became overwhelmed with people trying to claim their prize.
Pepsi tried to resolve the issue by offering 500 pesos per winning cap (approximately $8), which was largely rejected.
Public Outcry
Protests and riots ensued, resulting in five deaths and numerous injuries.
"Coalition 349" was formed to take legal action against Pepsi.
Allegations arose that Pepsi was responsible for inciting violence to discredit Coalition 349.
Legal and Court Outcomes
An arrest warrant was issued for nine Pepsi executives, but most charges against Pepsi were eventually dismissed.
By 2006, courts ruled Pepsi was not negligent, closing remaining cases.
Pepsi paid a small fine of 150,000 pesos.
Long-term Impact
Many Filipinos remain traumatized by the incident.
Pepsi faced reputational damage in the Philippines.
In a recent statement, Pepsi expressed regret over the incident, acknowledging the pain it caused but noting the passage of time and turnover of staff.
Key Points
The contest aimed to be a marketing success but resulted in a major PR disaster.
Pepsi's response and the aftermath highlight significant issues in crisis management.