Odwalla's Renewal Strategies in the E. coli Apple Juice Crisis
Analyzing Odwalla's discourse and strategic responses during the E. coli apple juice crisis, from the pre-crisis phase to post-crisis innovative solutions. The crisis management timeline includes key events such as the FDA investigation, voluntary recall, corrective actions, and strategic planning to address the tainted juice issue while considering public health and brand reputation.
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From Praise to Prolapse: Analyzing Odwalla s Discourse of Renewal Strategies in the Tainted E. coli Apple Juice Case Heidi Bolduc, University of Central Florida
Odwalla As A Brand Founding CEOs: Greg Steltenpohl Stephen Williamson Unique Culture: Youthful demographic Environmental issues Cultural diversity
Pre-crisis Phase (October 16-30, 1996) Denver Children s Hospital: Anna Gimmestad diagnosed with E. coli poisoning Washington Dept. of Health: Evidence of link between Odwalla apple juice & E. coli outbreak
Crisis Phase (October 31, 1996) 2 Tipping Points: 1. FDA launches 14-month investigation 1. Edelman Public Relations hired to manage crisis communication
Crisis Phase (November 1, 1996) Odwalla issues voluntary recall: 7 Western States: 1. California 2. Colorado 3. Texas 4. Nevada 5. New Mexico 6. Oregon 7. Washington 200 delivery trucks Apple & 12 vegetable juice products included
Crisis Phase (November 2-3, 1996) Corrective Actions: 1. Dedicated website 2. Toll-free 800 phone numbers 3. Refunds & payment of medical costs Odwalla Website, 1996
Crisis Phase (November 4-8, 1996) Despite these actions Apple juice sample tests positive for E. coli Anna Gimmestad passes away Large grocery store chains pull 1. Odwalla AND 2. Competitor juice products
Post-Crisis Phase (November 19, 1996) Odwalla s 2-Step Strategic Plan: 1. Call for competitors to stop selling unpasteurized apple juice 2. Consider heat treatments for its apple juice product
Post-Crisis Phase (December 5, 1996) Innovative New Process: Flash Pasteurization most effective guard against E. coli, while maintaining as much flavor and nutrients as possible (Reierson, 2009, p. 107)
Discourse of Renewal Theory (Ulmer, Seeger, & Sellnow, 2007) Aims to understand how organizations move from beyond crisis towards: 1. Rebuilding 2. Recovery & 3. Revitalization *Emphasizes post-crisis phase
Discourse of Renewal Theory (Ulmer, Seeger, & Sellnow, 2007) Characteristics of Crisis Communication: 1. Provisional as opposed to strategic 2. Prospective as opposed to retrospective 3. Focuses on opportunity in crisis 4. Leader-based *Broad categories designed to describe crisis communication accompanying renewal
Discourse of Renewal Theory (Ulmer, Seeger, & Sellnow, 2007) Conditions of Renewal 1. crisis type 2. stakeholder relationships 3. corrective action & change 4. public vs. private organizations *Attributions of crises most likely to lead to successful renewal outcomes
Odwallas Renewal Characteristics 1. Odwalla intuitively reacted to crisis: Voluntary recall Refunds for consumers Help lines & website FDA cooperation 2. Odwalla looks toward future: Warns against selling unsafe juice Innovates flash pasteurization
Odwallas Renewal Characteristics 3. Odwalla takes meaningful action: 2-Step Strategic plan Steltenpohl visits sick children 4. Odwalla uses leaders strategically: Positive reputation of CEOs Empowering employees Empathizing with victims
Odwallas Renewal Conditions 1. Massively destructive potential Public Health Concern E. coli transferrable patient patient 2. Positive stakeholder relationships Supportive reactions to recall & instructing information resources
Odwallas Renewal Conditions 3. Corrective action necessary Pasteurization issue had to be resolved Production safety program (HACCP) 4. Private status beneficial Quick hiring of Edelman PR Motivation to overcome crisis
Odwallas Tainted Renewal? Criticisms of Recovery: FDA investigations: production processes known to be tainted months before crisis Odwalla blatantly called for competitors to stop selling unpasteurized juice motive? Corrective actions reactive, not proactive
Odwallas Tainted Renewal? U.S. Military Letter Rejecting Odwalla as a Supplier (August 6, 1996)
Takeaways The Odwalla E. Coli Apple Juice Crisis 1. Successfully analyzed using Discourse of Renewal Theory 2. Criticized due to post-crisis developments 3. Impacts brand value today
Selected References Reierson, J. (2009). Odwalla: The long-term implications of risk communication. In T. L. Sellnow, R. R. Ulmer, M. W. Seeger, & R. S. Littlefield (Eds.), Effective Risk Communication: A message- centered approach (pp.105-118). New York, NY: Springer. Reierson, J.L., Sellnow, T.L., & Ulmer, R.R. (2009). Complexities of crisis renewal over time: Learning from the tainted Odwalla apple juice case. Communication Studies, 60(2), 114-129. doi:10.1080/10510970902834841 Thomsen, S.R., & Rawson, B. (1998). Purifying a tainted corporate image: Odwalla s response to an E. coli poisoning. Public Relations Quarterly, 43(3), 35-46.
