ZUS Coffee recently faced a significant backlash following its participation in an Adidas sports and fashion event. The coffee brand hinted at a potential collaboration giveaway with renowned sports apparel brand Adidas. They went as far as sharing an Instagram Reel featuring their beverages being served at a recent Adidas event. However, the beverage company faced backlash due to Adidas being among the global brands listed in the BDS boycott.
The backlash was swift and intense, with many consumers expressing disappointment that ZUS Coffee collaborated with Adidas during such a sensitive time. Faced with a plummeting brand sentiment, ZUS Coffee scrambled to contain the damage. They issued two apologies in an attempt to quell the controversy, but these efforts backfired, leaving customers unsatisfied and highlighting the critical importance of crafting a well-targeted and sincere response during a PR crisis.
The Misstep
ZUS Coffee’s first apology aimed to clarify the nature of their involvement in the Adidas event. The company emphasized that the event was a one-off activity and not a formal collaboration with adidas.
“Nevertheless, we hear you, and we should have known better,” the statement read. “As a home-grown Malaysian brand, we hold ourselves to the highest levels of integrity. ZUS Coffee will never knowingly associate ourselves with war and unequivocally condemn any act of violence against humanity.”
While the statement checked the boxes of a typical crisis response—apologizing, condemning violence, and promising future vigilance—it failed to address the specific concerns of its audience. The apology was perceived as generic and insincere, lacking a clear stance on the Israel-Palestine conflict.
Source: Hype.my
Realizing that the initial apology did not resonate with their audience, ZUS Coffee issued a second statement. This time, the company explicitly condemned genocide and expressed support for a Free Palestine.
“ZUS Coffee firmly stands in solidarity against genocide, advocating for a Free Palestine,” the second statement read. “We will be more mindful of our decisions going forward and ensure that our actions always reflect our values as a home-grown Malaysian brand.”
Despite this clearer stance, the damage was already done. The delayed and reactive nature of the second apology failed to fully restore trust among consumers.
Expert Analysis: Where Did It Go Wrong?
According to Stefanie Braukmann, General Manager at SPRG, the initial apology had several flaws. “It took a somewhat defensive tone, explaining that the event was a one-off activity and ‘not a collaboration’, which makes it look like the brand is trying to minimize or justify their actions rather than taking full responsibility,” Braukmann explained.
Braukmann also noted that the apology condemned violence “in a generic manner,” without addressing the specific context of the Israel-Palestine conflict. “The entire statement, while ticking the boxes of a typical crisis statement, used formal language and lacked emotional connection,” she added.
Ashvin Anamalai, CEO of DNA Creative Communications, echoed these sentiments. “It’s crucial to remember that when addressing the public, especially during a sensitive situation, your message needs to be crystal clear,” Anamalai said. “In Malaysia, we have a highly informed audience, all of whom are completely averse to cookie-cutter, templated messages.”
Both Braukmann and Anamalai highlighted the importance of understanding and aligning with audience values in crisis communication. In Malaysia, where public sentiment on the Israel-Gaza conflict is particularly strong, ZUS Coffee’s missteps demonstrated a lack of awareness and sensitivity.
Lessons Learned
The ZUS Coffee saga underscores the critical role of understanding your audience in crisis management. Today’s consumers demand authenticity and targeted communication that resonates with their specific concerns and values.
In ZUS Coffee’s case, their replies failed to connect with their Malaysian audience because it lacked specificity regarding the Israeli-Palestinian conflict. Malaysia has a long history of supporting the Palestinian cause, and the ongoing violence in Gaza has deeply impacted public opinion.
This situation also highlights the importance of building strong customer relationships long before a crisis hits. This involves actively engaging with customers, understanding their values, and building trust through transparent communication and responsible business practices. Companies must grasp their target demographics’ values, beliefs, and attitudes toward crucial issues.
Zus Coffee brand has outperformed many other coffee chains, reshaping the local coffee scene. The brand has grown quickly, with over 286 outlets across Malaysia as of 2023. To maintain their success, ZUS Coffee immediate focus should be on rebuilding their brand image. This may involve reaffirming their commitment to social responsibility in alignment with Malaysian values. Additionally, a more stringent selection process for future partnerships is necessary to ensure alignment with their core values and prevent similar situations.
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