Odwalla E. coli outbreak and response

Odwalla

At the peak of their success, Odwalla was hit with a major public relations blow when a deadly strain of the E.coli bacteria was found in Odwalla apple juice. The infection was definitively linked to Odwalla, making it impossible to place blame elsewhere. Ironically, Odwalla's strength became its Achilles heel. A refusal to pasteurize its freshly squeezed juices, and the unwillingness to use a chlorine-based rinse for sterilization might have earned points among eco- and health-conscious consumers but were most likely culprits of the bacterial outbreak. Odwalla needs a strong, assertive, and apologetic response, one that engenders trust and rekindles consumer trust in the product line without sacrificing core values.

Problem

Odwalla is in a predicament that cuts to the core of its company values. On the one hand, the company is committed to ecological leadership, sustainability, and the promotion of products that reflect a move away from industrialized food production. The shunning of pasteurization and chlorine washes is likely to please a great number of Odwalla customers. In fact, the company would lose a substantial portion of its customer base if it were to alter its production methods.

However, no one wants to get sick or die. Even hippies are concerned about suffering. The e. Coli outbreak was a huge blow to the company for several reasons. First, the bacterial outbreak revealed a potential weakness in the production process that Odwalla and its customers had come to trust. Second, the bacterial outbreak caused real harm. Considering the core values of Odwalla, the last thing the company wants is to make their customers sick. The company needs an immediate damage control strategy that does not compromise its core values. More problematic is how Odwalla will address the potential for future outbreaks without pasteurizing their drinks.

Facts

Escherichia coli (E. coli) is a microscopic bacteria that occurs naturally in the human digestive tract. However, some forms of E. coli can cause illness and even death, especially among those with compromised immune systems. Uncooked food products, including juices, can foster the growth of the bacteria. Heating and pasteurization minimize risk of E. Coli.

Odwalla's commitment to delivering a fresh-squeezed juice product is inherently contrary to pasteurization. Although nothing in the company's core values mentions specifically the issue of pasteurization or chlorine, the refusal to compromise on quality might be a part of "agreed upon standards."

Solution

Odwalla first needs to issue a highly publicized apology that should be published in media and featured on the company website prominently. The apology should also be publicized creatively, such as by having company representatives stage in-store demonstrations of Odwalla products to underscore their inherent safety and offer free giveaways.

The "former company officials" mentioned in the case are anonymous, have no credentials, and no sources to back up their claim that chlorine washes might prevent bacterial outbreaks. Therefore, Odwalla should ignore the advice to use chlorine washes unless scientific evidences proves their efficacy. Although pasteurization would reduce the potential for future outbreaks, it would not do so with one hundred percent certainty. More importantly, the worst thing Odwalla could do would be to pasteurize its drinks. Their entire business model would go down the drain if they sacrificed the pure quality of their fresh juices.

The solution to the flawed production process is relatively straightforward: Tighter health, hygiene, and safety regulations enforced and practiced throughout the production process. When production rates are high, the company must hire temporary workers to offset the pressure on existing staff. Floor managers must be able to carefully monitor hand-washing and other hygiene procedures. Research should be done on how to prevent e.Coli from spreading without pasteurization to aid Odwalla in developing effective risk prevention procedures. An "Our Promise to You" note on future bottles of Odwalla will outline the strict health and safety regulations the company uses so that they can continue to deliver fresh and unpasteurized juices.