Download - Odwalla Crisis Management Revised
CRISIS MANAGEMENT Lessons in brand resilience
taken from Odwalla Inc.
Shaer AhmedTaki DaLlisAdam WardMark HendersonSTAM CONSULTING
ACT FIX
TALKCREATE
who?Organic juice company30% Annual growth
Projected sales of $90 million
Expanding distribution
OCTOBER 16, 1996 : Anna Gimmstead, a 16 month year old child, was rushed to the emergency room
…She died 23 days later
TIMELINE Oct 30 : Odwalla is alerted to E-Coli link Company issues recall of all apple juice products
Oct 31 : Odwalla hires PR Firm FDA launches 14 month investigation
Nov 1 : Odwalla expands recall to include carrot juice & pledges to pay medical bills of injured Launches website (1st)
OF THE CRISIS
ACT
ACTTwo websites created in span of 4 days
Completed a full recall in 48 Hrs
Three task teams formed to respond
TIMELINE Nov 2 : Recall is completed (less than 48 hrs) Odwalla issues a press realease
Nov 3 : Odwalla launches a another website (2nd) Defends sanitation process in the media
Nov 4 : FDA confirms E-Coli link to Odwalla’s Dinuba plant Odwalla responds with press conference
OF THE CRISIS
TALK
TALKCore management team met every 15 MinDaily Conference calls were held with CEO
INTERNAL
TALKCommunication with the press was
ConstantHotlines were created to answer questions
Coolers were updated with public notes
EXTERNAL
FIX
FIXAccepted blame and apologized
Customers were reimbursed
Investigated flash pasteurization process
TIMELINE Nov 5 : Odwalla announces potential new heat pasteurization process
Nov 8 : Anna Gimmstead Dies. Odwalla finds no E-Coli at Dinuba plant
Nov 19 : FDA finds no E-Coli at Dinuba plant
OF THE CRISIS
CREATE
CREATEDeveloped a flash pasteurization process
Organized a crisis management plan
COSTOF THE CRISIS
One death and 60 sick
Sales plummeted by 90% and stock price fell by 34%
More than 20 personal lawsuits filed
$1.5 Million in fines paid
RecoveryFROM THE CRISIS
Voted best San Francisco business 1 year later
Retained 80% of customer base 1 year out
Became nations #1 fresh fruit distributor
“ Odwalla didn’t survive by accident.”- Stephen
Williamson CEO, Odwalla Inc.
ACT FIX
TALKCREATE
Q & A
TIMELINE Oct 30 : Odwalla is alerted to E-Coli link Company issues recall of all apple juice products
Oct 31 : Odwalla hires PR Firm FDA launches 14 month investigation
Nov 1 : Odwalla expands recall to include carrot juice Pledges to pay for medical bills of injured Launches website (1st)
Nov 2 : Recall is completed (less than 48 hrs) Odwalla issues a press realease
Nov 3 : Odwalla launches a another website (2nd) & Defends sanitation process in the media
Nov 4 : FDA confirms E-Coli link to Odwalla’s Dinuba plant Odwalla hosts a press conference in response
Nov 5 : Odwalla announces potential new heat pasteurization process
Nov 8 : Anna Gimmstead Dies. Odwalla finds no E-Coli at Dinuba plant
Nov 19 : FDA finds no E-Coli at Dinuba plant
OF THE CRISIS
Works Cited Layne, A. (2007, December). How to Make Your Company More Resilient. Fast Company. Retrieved from http://www.fastcompany.com/articles/2001/03/odwalla.html
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.