12% Seasoned Beef

Learning Goal: Examine promotional strategies.

The crisis: Yum! Brands, Taco Bell's parent company, was sued over the contents of its meat. The lawsuit alleged that the company's "seasoned beef" contained only 35% beef, and that Taco Bell was lying in its advertising.

How Taco Bell responded: Taco Bell explicitly declared the claims false, and shared with the public its percentages (88% beef, 12% secret recipe), along with the ingredients in the secret recipe itself.

The company quickly fired up a multi-platform PR campaign to shoot down the allegations and get the word out about its "not-so-secret" recipe. It included traditional local market newspaper ads, but focused on online marketing with a YouTube channel, Facebook page, and more.

The result: Taco Bell's existing consumer base responded overwhelming well to the campaign. The social media platforms shined, with the vast majority of commenters supporting the company's stance.

Details of the Plan

Earlier this year, a small law firm in Alabama grabbed national headlines by filing a lawsuit against Taco Bell asking them, "Where's the beef?" Their suit claimed the meat contained in its tacos couldn't, in good conscience, be called beef given only 36% is true meat and the majority a mysterious "filler." Something very interesting happened as a result of this lawsuit-a new corporate communications paradigm may have been created.

Immediately after the firm filed its case, it quite nimbly launched into an aggressive, multi-faceted PR campaign in efforts to bring Taco Bell to its knees and settle. Press releases were filed; consumer interest reporters across the country were pitched; influential bloggers were contacted-all in an effort to disseminate mere allegations to support their claims. Taco Bell, however, did not sit idly by.

Rather than offer the traditional "no comment" corporate response, outraged, Taco Bell fought back with an equally aggressive and arguably more creative campaign. Out of the box, Taco Bell took out full-page advertisements in the nation's marquee print and online media. Ads appeared in The New York Times, The Wall Street Journal, USA Today, and several online outlets with a very simple message-"Thank you for suing us"-creating a novel, engaging, comical platform to refute the scurrilous allegations made against them.

Such a strategy was a game-changer; the tide quickly turned. Following the ads, Taco Bell launched its own multi-faceted PR counter-offensive, turning to the viral world of social media to engage with consumers in a whole new way. The results were staggering. The YouTube video Taco Bell president and CCO Greg Creed posted days after the suit was filed revealing the beef "secret recipe" has since been viewed over 240,000 times, receiving 900 'likes' on Facebook. Its Twitter account, @TacoBell, quickly exploded into the Twitterverse, with the company tweeting 'Thank You' daily and actively engaging in conversations with its more than 123,000 followers. A study done by Wave Metrix, an analysis firm, found that 91 percent and 89 percent of consumers positively viewed Taco Bell’s statements on Facebook and Youtube, respectively. Perhaps most effective was Taco Bell's interesting promotions devised to counter the claims of the case. It launched an offer of 88-cent Crunchwrap Supremes to embrace the "88% premium beef" in its recipe; announced the "World's Largest Taco Giveaway," giving 10 million free tacos (beef, of course) to Facebook fans; and gave 600 free tee-shirts to Facebook fans who filled out a feedback form. It's no surprise that today Taco Bell boasts more than 6 million Facebook fans.

Taco Bell_ Of Course We Use Real Beef!.mp4

Following a crescendo of favorable press for Taco Bell, the law firm relented, falling on their sword and openly acknowledging Taco Bell's aggressive tactics made them aware that their claims had no merit. A spokesperson from the law firm (Beasley Allen's attorney Dee Miles) said the charges were dropped because of Taco Bell's "changes regarding disclosure and marketing of its 'seasoned beef' product." Revealing its 'secret recipe' and emphasizing the quality of its beef through various PR strategies made the bell ring loud and clear in Taco Bell's favor. Putting the nail in the coffin with one last wink, Taco Bell bought another series of ads which simply and elegantly asked the law firm: "Would it kill you to say you're sorry?"

Taking a step back, Taco Bell's willingness to embrace aggressive litigation PR tactics, not only ruled the day for its case but also arguably saved the company's brand. More broadly, however, the case gives corporate America some very important lessons to learn-and, perhaps, a new paradigm to follow. We learned that in the rapid-fire media age in which we live, where the dialogue about brands can evolve in less than a moment's notice, creativity and quick reactions count. "No comment," no response strategies for corporate America in the face of potentially damaging claims against brands need reconsideration. While Taco Bell's response is an extreme example and full-page ads in the major dailies may not spell success in most cases, simpler tactics might even do the trick. Addressing claims head-on, launching creative campaigns to keep your brand alive and thriving, embracing social media, and engaging with consumers in new ways are key takeaways from Taco Bell's secret recipe. In the face of high-profile litigation, corporate America should take a page out of Taco Bell's litigation PR playbook and should not be afraid to "Think Outside The Bun."

Why the response worked

Taco Bell utilized a psychologically effective message– “Thank you for suing us” – to counteract the allegations.

    • Rather than defending its products from allegations, Taco Bell’s messaging went on the offensive by insisting its seasoned ground beef is actually betterthan plain ground beef. The company also promised to take legal action against those making false claims against the seasoned beef. This strategy transformed a perceived crisis into an opportunity.
    • Taco Bell responded quickly. The company’s point-of-view was included in the Los Angeles Times’ initial report and became increasingly present as details of the controversy developed.
    • Taco Bell’s messaging was consistent across platforms – including traditional media, Twitter, Facebook and YouTube.
    • And finally, Taco Bell responded creatively and in good humor.

Legal

MONTGOMERY, Ala. — An Alabama law firm claims in a lawsuit that Taco Bell is using false advertising when it refers to using "seasoned ground beef" or "seasoned beef" in its products.
The meat mixture sold by Taco Bell restaurants contains binders and extenders and does not meet the minimum requirements set by the U.S. Department of Agriculture to be labeled as "beef," according to the legal complaint.
The class-action lawsuit was filed Friday in federal court in the Central District of California by the Montgomery law firm Beasley, Allen, Crow, Methvin, Portis & Miles.
Attorney Dee Miles said attorneys had Taco Bell's "meat mixture" tested and found it contained less that 35 percent beef.
The lawsuit on behalf of Taco Bell customer and California resident Amanda Obney does not seek monetary damages, but asks the court to order Taco Bell to be honest in its advertising.
"We are asking that they stop saying that they are selling beef," Miles said.
Irvine, Calif.-based Taco Bell spokesman Rob Poetsch (PAYCH) said the company denies that its advertising is misleading.
"Taco Bell prides itself on serving high quality Mexican inspired food with great value. We're happy that the millions of customers we serve every week agree," Poetsch said. He said the company would "vigorously defend the suit."
The lawsuit says that Taco Bell's "seasoned beef" contains other ingredients, including water, wheat oats, soy lecithin, maltodrextrin, anti-dusting agent and modified corn starch.

UPDATE, 1/25/11:

In an official statement from Taco Bell, its President and Chief Concept Officer Greg Creed fires back at the suit's lawyers, saying they "elected to sue first and ask questions later -- and got their 'facts' absolutely wrong." Moreover, Taco Bell says they plan to pursue legal remedies for false statements made about their food, emanating from the lawsuit. Taco Bell's official statement:

"At Taco Bell, we buy our beef from the same trusted brands you find in the supermarket, like Tyson Foods. We start with 100 percent USDA-inspected beef. Then we simmer it in our proprietary blend of seasonings and spices to give our seasoned beef its signature Taco Bell taste and texture. We are proud of the quality of our beef and identify all the seasoning and spice ingredients on our website. Unfortunately, the lawyers in this case elected to sue first and ask questions later -- and got their "facts" absolutely wrong. We plan to take legal action for the false statements being made about our food."
Greg Creed
President and Chief Concept Officer
Taco Bell Corp.