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Odwalla Crisis Management Revised

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MBA Crisis Management Presentation

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Odwalla Crisis Management Revised

  1. 1. CRISIS MANAGEMENT<br />Lessons in brand resilience taken from Odwalla Inc.<br />Shaer Ahmed<br />TakiDaLlis<br />Adam Ward<br />Mark Henderson<br />STAM CONSULTING<br />
  2. 2. ACT<br />FIX<br />TALK<br />CREATE<br />
  3. 3. who?<br />Organic juice company<br />30% Annual growth<br />Projected sales of $90 million<br />Expanding distribution<br />
  4. 4. OCTOBER 16, 1996 : Anna Gimmstead, a 16 month year old child, was rushed to the emergency room<br />…She died 23 days later<br />
  5. 5. TIMELINE<br />Oct 30 : Odwalla is alerted to E-Coli link <br /> Company issues recall of all apple juice <br /> products<br />Oct 31 : Odwalla hires PR Firm<br /> FDA launches 14 month investigation<br />Nov 1 : Odwalla expands recall to include carrot <br /> juice & pledges to pay medical bills of injured <br /> Launches website (1st)<br />OF THE CRISIS<br />
  6. 6. ACT<br />
  7. 7. ACT<br />Twowebsites created in span of 4 days<br />Completed a full recall in 48Hrs<br />Three task teams formed to respond<br />
  8. 8. TIMELINE<br />Nov 2 : Recall is completed (less than 48 hrs)<br />Odwalla issues a press realease<br />Nov 3 : Odwalla launches a another website (2nd) <br /> Defends sanitation process in the media <br />Nov 4 : FDA confirms E-Coli link to Odwalla’s<br /> Dinuba plant<br />Odwalla responds with press conference<br />OF THE CRISIS<br />
  9. 9. TALK<br />
  10. 10. TALK<br />INTERNAL <br />Core management team met every 15Min<br />Daily Conference calls were held with CEO<br />
  11. 11. TALK<br />EXTERNAL<br />Communication with the press was Constant<br />Hotlines were created to answer questions <br />Coolers were updated with public notes<br />
  12. 12. FIX<br />
  13. 13. FIX<br />Accepted blame and apologized<br />Customers were reimbursed<br />Investigated flash pasteurization process<br />
  14. 14. TIMELINE<br />Nov 5 : Odwalla announces potential new heat <br /> pasteurization process<br />Nov 8 : Anna Gimmstead Dies. <br /> Odwalla finds no E-Coli at Dinuba plant<br />Nov 19 : FDA finds no E-Coli at Dinuba plant<br />OF THE CRISIS<br />
  15. 15. CREATE<br />
  16. 16. CREATE<br />Developed a flash pasteurization process<br />Organized a crisis management plan<br />
  17. 17. COST<br />OF THE CRISIS<br />One death and 60 sick<br />Sales plummeted by 90% and stock price fell by 34%<br />More than 20 personal lawsuits filed<br />$1.5 Million in fines paid<br />
  18. 18. Recovery<br />FROM THE CRISIS<br />Voted best San Francisco business 1 year later <br />Retained 80% of customer base 1 year out<br />Became nations #1 fresh fruit distributor <br />
  19. 19. “ Odwalla didn’t survive by accident.”<br />- Stephen Williamson<br /> CEO, Odwalla Inc.<br />
  20. 20. ACT<br />FIX<br />TALK<br />CREATE<br />
  21. 21. Q & A<br />
  22. 22. Oct 30 : Odwalla is alerted to E-Coli link <br /> Company issues recall of all apple juice <br /> products<br />Oct 31 : Odwalla hires PR Firm<br /> FDA launches 14 month investigation<br />Nov 1 : Odwalla expands recall to include carrot juice<br /> Pledges to pay for medical bills of injured<br /> Launches website (1st)<br />Nov 2 : Recall is completed (less than 48 hrs)<br />Odwalla issues a press realease<br />Nov 3 : Odwalla launches a another website (2nd) &<br /> Defends sanitation process in the media <br />Nov 4 : FDA confirms E-Coli link to Odwalla’s Dinuba plant<br />Odwalla hosts a press conference in response<br />Nov 5 : Odwalla announces potential new heat <br /> pasteurization process<br />Nov 8 : Anna Gimmstead Dies. <br /> Odwalla finds no E-Coli at Dinuba plant<br />Nov 19 : FDA finds no E-Coli at Dinuba plant<br />TIMELINE<br />OF THE CRISIS<br />
  23. 23. Works Cited<br />Layne, A. (2007, December). How to Make Your Company More Resilient. Fast Company. Retrieved from http://www.fastcompany.com/articles/2001/03/odwalla.html<br />Sellnow, Timothy L., Ulmer, Robert R., Seeger, Matthew W., Littlefield, Robert. Effective Risk Communication: A Message Centered Approach. 1st edition. New York: Springer, 2009. Print.<br />

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