Elpozo suffers a high risk of reputation.
ElPozo is the second most widely consumed brand is dedicated to the production of healthy and nutritional meat-based products in Spain. However, the program Salvados broadcasted a documentary from one of its suppliers farms in Murcia, where malnourished, sick or dead pigs could be seen in the same pens as the living ones. ElPozo, first wanted to separate itself from this farm explaining that it was a recovery farm, but finally it has stopped working with it since Belgian supermarkets have stopped selling their products and the public opinion reaction.
Because of the program broadcasting, the stakeholders of ElPozo company have been affected, the customers, suppliers, workers or the personnel that make up the work groups. Stakeholders are essential for a company, and they have been harmed the most by this case. The images broadcasted on television have been able to make customers stop buying the brand because they these were very shocking to consumers. A decrease on sales means a decrease in staff, reduction of expenses that may involve breaking contracts with suppliers. The disconnection with this supplier farm was because of an opening of the investigation file. This fact can lead to the ElPozo company to be sanctioned for not complying with the sanitation regimes.
As a result, El Pozo has decided to expand the quality standards in animal welfare. They have also ensured that they have reviewed and increased the rigor in the slaughter process of the animals. For example, increasing the staff of veterinarians a new specific certification of animal welfare…This is an act in order to increase its image reputation after the facts, to get to better standards of quality systems, to commit with their values and to minimize the risks of the company.
It will take a long time and a big effort in communication to remove this images from consumers’ minds and to get back to customer’s loyalty.