Shweta_Odwalla_30.04.2015

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Shweta_Odwalla_30.04.2015

  1. 1. An insight of the 1996 crisis
  2. 2. Odwalla • Odwalla Inc is an American food product company that sells fruit juice, smoothies and food bars. It was founded in Santa Cruz, California, in 1980 and is headquartered in Half Moon Bay, California. • The founders of the company are Greg Steltenpohl, Gerry Percy, and Bonnie Bassett. •The trio began by squeezing orange juice with a secondhand juicer in a shed in Steltenpohl's backyard. They sold their product from the back of a Volkswagen van to local restaurants. •After 5 years of growth (annual sales rising 30% per year) and immense expansion, the company was incorporated in 1985.
  3. 3. The Problem: •In November, after various researches that were conducted ,health officials in Washington state confirmed & informed the company that they had discovered a link between several cases of E. coli and Odwalla fresh apple juice. •One child died and more than 60 people in the Western United States and Canada became sick after drinking the juice. •Sales went down by 90% •Odwalla's stock price fell 34%. •More than 20 personal-injury lawsuits were filed against the company.
  4. 4. What the Company did: • Customers were reimbursed• Defended the sanitation process in the media
  5. 5. Timeline: 30th October 1996: The E coil outbreak is first linked to Odwalla. Odwalla immediately issues a recall 31st October 1996: Odwalla hires a PR firm. 1st November,1996: Odwalla expands recall to include carrot juice. It offers to pay medical bills and also launches its website. 2nd November,2015: Recall was completed 4th November 2015: FDA confirms presence of Ecoil in Odwalla products. 5th November, 2015: Odwalla announces new potential heat pasteurization process.
  6. 6. Results:
  7. 7. What we learn:  Very essential to establish a crisis team. You might not need them, but when there are crisis, you will be glad that you had it  The well being of the end customers is of utmost importance. Quick actions have to be taken. There has to be constant interactions with the media. The main aim should be to regaining the trust. Learn from your mistakes.

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