Nestle apologies for gift gaffe after Azeri protest

Economic Times, India
May 5 2008

Nestle apologies for gift gaffe after Azeri protest
5 May, 2008, 1904 hrs IST, REUTERS

MOSCOW: Swiss-based food company Nestle has apologised to Azerbaijan
after CDs it handed out free with packets of breakfast products
angered the former Soviet state by accusing it of provoking war with
its neighbour.

Azerbaijan made an official protest after discs aimed at children
across Russia stated it had provoked a war with Armenia over the
separatist Nagorno-Karabakh territory. Nestle has halted distribution
of the CDs.

"It’s a complete disaster as a statement, first it is incorrect, there
are many views. It is also absolutely not the right place for it, it
is a catastrophe," said Andrey Bader, Nestle’s corporate affairs
director for Russia.

The conflict in Nagorno-Karabakh between Azeri and Armenian forces
claimed an estimated 35,000 lives and despite a ceasefire in 1994 the
issue remains highly sensitive in both countries. Armenia supports the
separatists.

Azerbaijan wrote to Nestle’s headquarters in Switzerland to complain
about the disc.

"We have sent an official letter expressing discontent and Nestle
offered apologies and withdrew all the CDs which had been
distributed," said a spokesman for the Azeri Foreign Ministry. "Every
measure which was possible has been taken," he said, noting the CDs
were not distributed in Azerbaijan itself.

EMOTIONAL ISSUE

The bonus computer disc was being distributed across Russia from April
10 to April 30 with two breakfast products — Kosmostars and Nesquik
— and contained nuggets of data about different countries. "Now,
regretfully, it has become pretty emotional in Azerbaijan," said
Bader.

The content for the disc was prepared by an outside company and
although the same details had been distributed since 1996, this was
the first time it was noticed, said Bader. Nestle has now temporarily
halted the promotion, but will resume it once revised discs are
despatched.

Bader said he did not know how many discs would have to be destroyed,
but said it was a substantial campaign covering major cities across
Russia, which has a population of 142 million. He could not estimate
the cost to Nestle, but said the decision to halt distribution was
taken after consultation with its Swiss headquarters hours after the
problem came to light.

"Nestle took time to officially apologise with its consumers, with a
recorded speech on Azeri TV, we brought this in a very loud way to
consumers," he said.