Nongfu Springs embarks on crisis comms after controversial promo leads to stock price drop

Chinese bottled water brand Nongfu Springs has requested Chinese news site TouTiao as well as relevant media outlets and social media platforms to delete any articles or commentary that will further damage the brand's reputation. This follows the recent allegations that the brand reportedly used ingredients from Japan's Fukushima prefecture for its peach-flavoured sparkling water. Fukushima was impacted by a nuclear accident in 2011. According to the Weibo post, Nongfu Springs said those articles were defamatory to the brand. 

According to multiple media reports including the Hong Kong Economic Times (HKET), a photo from a Nongfu Springs ad, which has since been removed, said that its peach-flavoured sparkling water used peaches from Fukushima. This sparked concerns over the potential risk of radiation contamination in the ingredients, media reports said. Following the news, HKET said Nongfu Springs' share price dipped 6.2% to a low of HK$38.5. As of 28 June, it was at HK$40.25.

At the same time, the brand clarified in the Weibo statement that the drink's ingredients are not imported from Fukushima. Instead, the company's R&D team created a similar flavour for the beverage based on peaches from the prefecture, and that the drink has no relation to the peaches produced in Fukushima. Nongfu Springs added that its products meet the requirements of relevant laws and regulations. 

Netizens, however, were not buying Nongfu Springs' explanation. Several of them pointed out that the company had initially used the words "Fukushima prefecture" in its advertisement. Another user said it is puzzled by how a big company such as Nongfu Springs lacked market acumen and instead, used the words "Japan" and "Fukushima" to draw eyeballs.

Following the nuclear incident in 2011, imports of Japanese food products including dairy and vegetables from five Japanese prefectures were banned by China, South China Morning Post said. They were Fukushima, Tochigi, Gunma, Ibaraki and Chiba, and this was done amidst fears of radiation after the Daiichi Nuclear Power Plant melted down following a tsunami.