Crisis Management
Páginas: 3 (711 palabras)
Publicado: 14 de agosto de 2011
Alejandra Hernández Montes de Oca
CRISIS MANAGEMENT: ODWALLA CASE
Odwalla is an American health-conscious juice company that sells fruit juice, smoothies and food bars. It was founded in SantaCruz, California in 1980.
Greg Steltenpohl, Gerry Percy and Bonnie Bassett took the idea of selling fruit juices from a business guidebook, and they began by squeezing orange juice with a secondhandjuicer in Steltenpohl's backyard. They sold their product from the back of a Volkswagen van to local restaurants.
Odwalla uses fruits and vegetables that have recently been harvested to make many ofits products, as well as organic oats for food bars and certain tropical fruits in a frozen purée form, purchased from an outside source. Some juices are seasonal. Fruit availability and price isalso affected by bad weather, disease, and natural disasters.
The company was growing strongly with annual sales rising 30% per year and had established a strong brand with enormous customer loyalty.Much of this growth resulted from the perception that Odwalla's products were healthier than regular juice because of unpasteurization.
THE PROBLEM
On October 30, 1996, Health officials inWashington state informed the company that they had discovered a link between several cases of E. coli and Odwalla fresh apple juice.
As a result of the outbreak, 16-month-old Anna Gimmestad from Denver,Colorado, died from kidney failure, and at least 66 people became sick. Fourteen children were hospitalized with hemolytic uremic syndrome, a severe kidney and blood disorder, and were, according todoctors, "likely to have permanent kidney damage and other lasting problems”
In consequence, Odwalla stock fell by forty percent and sales of its products dropped by ninety percent. The company laid off60 workers, and, at the end of the fiscal year, posted a loss of $11.3 million.
the company was charged with 16 criminal counts of distributing adulterated juice. Odwalla pled guilty, and was...
CRISIS MANAGEMENT: ODWALLA CASE
Odwalla is an American health-conscious juice company that sells fruit juice, smoothies and food bars. It was founded in SantaCruz, California in 1980.
Greg Steltenpohl, Gerry Percy and Bonnie Bassett took the idea of selling fruit juices from a business guidebook, and they began by squeezing orange juice with a secondhandjuicer in Steltenpohl's backyard. They sold their product from the back of a Volkswagen van to local restaurants.
Odwalla uses fruits and vegetables that have recently been harvested to make many ofits products, as well as organic oats for food bars and certain tropical fruits in a frozen purée form, purchased from an outside source. Some juices are seasonal. Fruit availability and price isalso affected by bad weather, disease, and natural disasters.
The company was growing strongly with annual sales rising 30% per year and had established a strong brand with enormous customer loyalty.Much of this growth resulted from the perception that Odwalla's products were healthier than regular juice because of unpasteurization.
THE PROBLEM
On October 30, 1996, Health officials inWashington state informed the company that they had discovered a link between several cases of E. coli and Odwalla fresh apple juice.
As a result of the outbreak, 16-month-old Anna Gimmestad from Denver,Colorado, died from kidney failure, and at least 66 people became sick. Fourteen children were hospitalized with hemolytic uremic syndrome, a severe kidney and blood disorder, and were, according todoctors, "likely to have permanent kidney damage and other lasting problems”
In consequence, Odwalla stock fell by forty percent and sales of its products dropped by ninety percent. The company laid off60 workers, and, at the end of the fiscal year, posted a loss of $11.3 million.
the company was charged with 16 criminal counts of distributing adulterated juice. Odwalla pled guilty, and was...
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