Pepsi's Number Fever Disaster in the Philippines (1992)

Contest Overview

• Name of Contest: Number Fever
• Concept: A daily winning number was announced on the news.
  • If you had a Pepsi bottle cap with that number, you won a million pesos.
• Popularity: Highly popular, with half of the Philippines' population participating.
• Prize Value: A million pesos was life-changing for the average Filipino.

Initial Execution

• Pepsi’s Control: Controlled winners via a computer program.
  • Program seeded two winning caps per bottling plant.
  • Objective: Maintain a limited number of winners to stay within budget.

Catastrophic Glitch

• Extension: Contest extended by 5 weeks due to popularity.
• Error on May 25, 1992: Winning number "349" announced.
  • 349 was a non-winning number; bottling plants freely printed it.
  • Result: Over 600,000 winning caps were in circulation.

Aftermath of the Error

• Public Reaction: Wild celebrations and rush to claim prizes.
• Pepsi's Response:
  • Offered 500 pesos per winning cap (0.5% of original prize).
  • Blamed computer glitch; refused to honor full prize.
• Public Outrage: Led to protests and riots, resulting in 5 deaths and numerous injuries.

Organized Legal Action

• Coalition 349: Legal action group formed by winners.
  • Led by preacher Del Fiero.
  • Aim: Sue Pepsi for $400 million.

Allegations and Legal Proceedings

• Rumors: Accusations that Pepsi bombed their own trucks to frame Coalition 349.
  • Testimonies claimed Pepsi hired mercenaries.
  • Pepsi denied these accusations.
• Legal Outcome:
  • Arrest warrants issued for nine Pepsi executives.
  • Most lawsuits were eventually dismissed.
  • In 2006, court ruled Pepsi not negligent; issued a 150,000 pesos fine.

Lasting Impact

• Cultural Memory:
  • Traumatized many Filipinos.
  • Mentioning "Pepsi" is frowned upon in certain groups.
• Pepsi's Statement:
  • Acknowledged the events are over 30 years old.
  • Expressed regret but mentioned no current executives were involved.