Case Study Odwalla

Cas eSt udy -Odwal l aI nc .ECol i Out br eak

Mostf oodandbever agemanuf act ur i ngcomp mpani es pr i det hems el v esonus i ngt hefi nes tandf r es hes t i ngr edi ent sav ai l abl ef ort hei rpr oduc t s .Howev er , whathappenswhenacomp mpany’ spr oducti sbl ame medf oraf oodbor ne i l l nes s?I nOc t ober30,1996,anEc ol iout br eakwasl i nk edt oj ui c e pr oducedbyt heOdwal l aJui ceComp mpany . Whoi sOdwal l a?

Od wal l aI n c .be ga nt we nt yye ar sag owh ent h r eef r i e nd sus e da$ 20 0 handj ui c ert odel i v erf r es hor angej ui c et ol oc al r es t aur ant si nSan Fr anc i s co,Cal i f or ni a.Nowear ni ng$19mi l l i ondol l ar say eari n r e v enue,Odwal l ac ombi nessc i enc eandar tt oc r eat et hef r es hes t pr oduc t sav ai l abl e.Odwal l af oc us esnotonl yonnour i s hi ngt hebody , butal s ot hemi ndands oul . Thepr obl em? m?

Heal t hoffic i al si nWas hi ngt ons t at ec onfi r medal i nkbe t weenc as esof Ec ol i0157: H7andOdwal l aappl ej ui c eonOc t ober30,1996.Asa r es ul t ,onec hi l ddi edandatl eas t60peopl ebec ames er i ous l yi l l af t er dr i nk i ngt hej ui c e.

Whatt odo?

Odwal l aI nc .hi r edEdel manPubl i cRel at i ons ,ani ndependentgl obal PRfi r m,onOc t ober31,1996t ohel phandl et hes i t uat i on.Odwal l a appr opr i at l e yc hos eCEO St ephenWI l l i ams ont oac tasal i as on bet weent hecompanyandt hepubl i c. Odwal l at ac kl edt hec r i s i sheadonwi t hopenandhones ti nt ent i ons . Edel mans t r at egi c al l yandpur pos el ypl ac edWi l l i ams oni nt he s pot l i ghtt os howt hathewasi nv ol v edi nr es ol v i ngt hec r i s i s . Wi l l i ams onc ooper at edwi t ht hemedi aupf r ontande x pr es s ed s ympat hyf oral lt hos eaffec t edbyt heout br eak .Odwal l a' svi s i bl eand c ons t antpr es enc ei nt hemedi aandfi r mc ommi t mentt or es ol v et he c r i s i swer eeffec t i v es t epst ohel pr es t or et hei rc r edi bi l i t y . I twasi mpor t antf orWi l l i ams ont oal s oaddr es st hec ompany i nt er nal l y .Wi l l i ams ondi r ec t eddai l yc onf er enc ec al l swi t hempl oy ees t ok eept hem pos t edont hec ur r ents i t uat i onandt os quel c h unnec es s ar yr umor s .Wi l l i am’ sac t i ont oi nc l udet heempl oy eesi nt he c r i s i swasahel pf ul s t ept ouni t et hec ompanyasawhol e-t heywer e i nt hi st oget her . Al s o,Odwal l aus edas epar at ewebs i t et opos tac cur at ei nf or mat i on f ort hepubl i ct omoni t ort hes t at usoft hec r i s i s .Es s ent i al l y ,Odwal l a di dev er y t hi ngt heyc oul datt het i met ohandl et hec r i s i st hebes tway t heyc oul d. Out come?

I ti sev i dentt hatOdwal l aI nc .hadnoc r i s i smanagementpl ani n pl ac e.Cr i s i smanagementpl ansar ec r uc i alandc r i t i c alt oa c ompany ' ssur v i v al .Wi t hs uc hapl anOdwal l ac oul dhav eeff ec t i v el y handl edt hesi t uat i ont hems el v es .Odwal l ai gnor edk eypr odr omes ,or

war ni ngs i gns ,t hati ndi c at edt hei rj ui c ewascont ami nat ed.Cus t omer s hadc ompl ai nedpr ev i ous l yoff al l i ngi l l bef or et hemas sec ol i out br eak ,butOdwal l al ook edt heot herwa y .I fOdwal l ahadpai d at t ent i ont os uc hwar ni ngs i gnst heycoul dhav eenac t eds t r i c t er heal t hc odesandc l eani ngpr ot oc ol s .Howev er ,t hec ompan y’ s hones t yandwi l l i ngnes st ot ak ef ul lr es pons i bi l i t yf ort hei rac t i ons s houl dbepr ai s ed.Odwal l as uc c es s f ul l yi mpl ement edal as tmi nut e c r i s i spl anandl ear nedv al uabl el es sons .I nas t at ementt ot hemedi a Wi l l i a ms o nc o mme nt e d,Od wa l l aha sb eens c a r r edf o r e v erb yt he mi s t ak et hatwemadei n1996.Wedon' tt r yt ohi det hats c ar .Wedon' t c ov eri tup.Wek eepi ti npl ai ns i ghtt or emi ndusoft het r agedyt hat wemus tav oi datal lc os t s . " ht t p: / / www. f as t c ompa ny . c om/ a r t i c l e s/ 2 00 1/ 03 / odwal l a . ht ml