Nestlé immediately demanded that the video be removed from YouTube citing copyright infringement. YouTube agreed and removed the video -- thereby creating a stir that eventually got traditional media outlets interested in the story. Nestlé made matters worse with a number of angry comments it posted to its Facebook fan site. As a result, Nestlé is getting hammered with negative comments on its Facebook site. I'm not even sure you can still call it a fan site at this point... What's most amazing to me is that Nestlé has apparently abandoned its Facebook page. The company hasn't reacted to the onslaught of criticism since last Friday's comments.
For a timeline of the events that lead to this PR crisis, check out this great slideshow:
For a an excellent analysis of Nestle's crisis response (or lack thereof), check Jeremiah Owyang's post & also this SocialMediaToday report.
Also check out the Brand Builder's 2 part series on How to make sure your Facebook page doesn't become a Trojan horse (part1, part2).