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Expanding Grocery Chain Encounters Union Opposition

Situation overview:

One of the largest non-union grocery chains in the country made plans to enter new territory, only to be confronted with organized opposition from The United Food & Commercial Workers' Union. The union used smear attacks to try to damage the company's reputation in the market, revealing a need for proactive crisis communications to protect the grocery chain's brand moving forward.

PROI member Role:

A  PROI Worldwide Americas Crisis Group partner developed a crisis strategy for the client that involved:

  • Interviewing top executives at the client's headquarters to determine the company's needs, capabilities and potential vulnerabilities;
  • Developing a comprehensive issues management plan that included more than 90 specific crisis scenarios;
  • Pitching proactive news stories to counter the inevitable attacks in the new market;
  • Conducting media training with company executives;
  • Writing a White Paper on union corporate campaigns; and
  • Creating a strategic philanthropic plan to reinforce the company's mission and positioning.

Results:

Despite the union spending close to $5 million on a campaign to damage the grocery chain's reputation, its market share continues to steadily climb. Eight years after entering the market, the chain had 25 percent market share; after two decades the chain earned the top market position. Industry analysts called the client's growth "remarkable." Today the grocery chain is recognized as a favorite retailer in independent market polls, is recognized on national "most admired company" lists, and continues to expand into new geographic markets.