How Maple Leaf Foods is handling the Listeria outbreak

Two companies, two disasters, two very different responses.

Within weeks this summer, two Toronto-area companies each faced a crisis that had the potential to severely damage, or possibly even ruin, their businesses. The responses have been a study in contrasts.

Listeria outbreak

On Aug. 23, a Toronto Maple Leaf Foods plantwas confirmed as being involved in the outbreak of the food-borne illness, caused by the bacterium Listeria monocytogenes. A daylater, Maple Leaf upgraded a precautionary recall of 23 of its products, issued the previousweek, to all 220 packaged meats from the plant, which has been shut down. The companyhas estimated the recall will directly costit at least $20 million, withfurther costsexpected due to lost sales and advertising to rebuild its image.

The company has been highly visible since the crisis hit. The firm's CEO, Michael McCain, heldpress conferences and posted an apology on its web site. A company spokeswoman did interviews in a wide range of media. The firmalso ran TV spots and took out advertisements in newspapers.

"This is a corporation with more than $5 billion in sales, they made $200 million in profit last year, so, therefore, they're a company worth billions of dollars. They're clearly trying to protect themselves," Rotman School of Management marketing professor David Soberman recently toldCBC.

Another expertpraised the company for using McCain prominently in its communications with the public.

"I think for the chief executive to be on camera about it is the most effective way, and probablythe only thing that should be done in a situation like this," said retail strategist Don Watt of DW+Partners Inc.

Watt believes the Maple Leaf brand will recover quickly from the crisis.

"I think there may be a little hit, but I think the recovery will be quite rapid. I think the reassurance is there. The fact that [McCain] took it off [the market] quickly mitigates any risk to consumers. They should feel confident the stuff that caused the problem is gone."

Propane plant explosion

A blast at Sunrise Propane's plant in North York, Ont., on Aug.10 forced about 12,000 people from their homes, and led to two deaths, one presumed to be missing Sunrise employeeParminder Saini, and the other, firefighter Bob Leek. Damage and cleanup costs are pegged at $2 million.

The company has been keeping a very low profile, issuing only a couple of public statements.

"In order to avoid prejudicing themselves, or to create problems for themselves later if there are legal proceedings, they're not saying very much," said Soberman.