Turnaround · India · 2003–2004
Cadbury India 2003: worms in Dairy Milk during Diwali
Just before Diwali, worms were found in Dairy Milk bars in Maharashtra. Cadbury invested in new sealed packaging, ran an education campaign, and brought in Amitabh Bachchan to restore trust.
By Shivam Bhandari · Reviewed 31 October 2026 · How we write
by the numbers
- Timing
- October 2003, just before Diwali
- Reported sales fall
- around a third
- Packaging fix
- new sealed metallised wrapper
What happened
In October 2003, in the run-up to Diwali — the biggest chocolate season — customers in Maharashtra reported finding worms in Dairy Milk bars. Regulators seized stock, the media covered it heavily, and sales reportedly fell by around a third.
Cadbury argued the infestation came from poor storage at retailers rather than its factories, but recognised that blaming others would not restore trust. Under ‘Project Vishwas’ (trust), it invested in new metallised, tightly sealed packaging, educated retailers on storage, and made visits to shops.
It then hired Amitabh Bachchan, one of India's most trusted celebrities, for adverts showing him visiting a factory and reassuring families. Sales recovered within months and Dairy Milk retained its leadership.
Timeline
- 2003
Worm complaints; stock seized in Maharashtra.
- 2004
New packaging and Amitabh Bachchan campaign; recovery.
what made it work
- Fixed the vulnerability, even though the cause was in the supply chain.
- Educated the whole distribution chain.
- Borrowed trust from a credible public figure.
the lesson
Customers don't care whose fault it is — the brand must take ownership of the fix across the whole chain.
Apply it to your business
- 1Own problems in your distribution chain as your own.
- 2Make the fix visible in the product itself.
- 3Use trusted voices to rebuild confidence.
Laws at work in this story
Figures are rounded and drawn from public reports, company filings and widely cited coverage at the time. Check the company's latest filings before relying on any number.