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Protecting Your
Customer IS
Protecting Yourself
and Your Brand


Cautionary Tales
First off – Something for Free


                  "A stunningly researched
                  work, "Poisoned" reads as
                  though Clarence Darrow
                  had written "The Jungle.”

                  "Just in time for BBQ
                  season, an investigative
                  journalist traces the path of
                  a devastating outbreak of
                  food-borne illness linked to
                  hamburger meat.”
Food Production is a Risky Business

 • Competitive Markets

 • Stockholder Pressures
   for Increasing Profits
   over Long-term Safety

 • Lack of Clear Reward
   For Marketing and
   Practicing Food Safety

 • Brand Awareness Risks
Social Media: It’s a new world
“Social media properties allow consumers to ask
for brand accountability in the same venue that
brand is using to promote itself.” – Justin Kistner


Information is out there in
real time and everyone has
access:
• Customers
• Plaintiffs’ lawyers
• Government
Are You Ready?
Social Media Managers should be prepared:
• Practice responding to disgruntled customers
• Run potential responses past your legal team
• Try not to use ―canned‖ responses—but have them
  ready if you need them
• Acknowledge customer concerns or complaints
  publicly, then:
  – Redirect conversations outside of social media channels if
    necessary (i.e. send to legal)
  – Escalate urgent questions/issues so they are addressed by
    the appropriate person, not the social media manager
Information at your customers’
fingertips
                  Consumers expect engagement
                  with a person—especially during
                  a recall
                  • Which lot numbers/UPC
                    codes/expiration dates
                  • Which stores sold recalled
                    products
                  • Where (geographically) were
                    products distributed

    Don’t expect them to find your recall notice.
     Respond to each request for information.
Setting Expectations: Be Proactive
Is your social media profile staffed 24/7?
• Does it need to be?
  – Staff your profiles when they’re most active
  – Let your fans/followers know how long they should
    expect to wait for a response (but make a point of
    responding faster)
• If there are reasons why
  you can’t or won’t respond
  to messages of a certain
  nature publicly on your page,
  tell your fans/followers
  up front.
It is a Global Food Economy
To Put Things in Perspective

                       • Microbial pathogens
                         in food cause an
                         estimated 48 million
                         cases of human
                         illness annually in
                         the United States
                       • 125,000 hospitalized
                       • Cause up to 3,000
                         deaths
Strict Product Liability

                                 •   Strict Liability
                                     – Are you a
                                       manufacturer?
                                     – Was the product
                                       unsafe?
                                     – Did product
                                       cause injury?

                                 •   Negligence
 •   Punitive Damages
     /Criminal Liability             – Are you a
                                       product seller?
     – Did you act with
       conscious disregard           – Did you act
                                       ―reasonably‖?
       of a known safety risk?
Who is a Manufacturer?

  A “manufacturer” is
  defined as a “product
  seller who
  designs, produces, makes,
   fabricates, constructs,
  or remanufactures the
  relevant product or
  component part of a
  product before its sale
  to a user or consumer.”

  RCW 7.72.010(2); see also Washburn v. Beatt Equipment Co.,
  120 Wn.2d 246 (1992)
It’s called STRICT Liability for a Reason

                     •   The only defense is
                         prevention
                     •   It does not matter if
                         you took all reasonable
                         precautions
                     •   If you manufacture a
                         product that makes
                         someone sick you are
                         going to pay
                     •   Wishful thinking does
                         not help
Pathway of a Foodborne Illness
Investigation
Pathway of a Foodborne Illness
Investigation




                        If there are more ill persons
                              than expected, an
                             OUTBREAK might be
                                  underway.
Pathway of a Foodborne Illness
Investigation
Investigative Partners
 • Laboratory investigators
    – Microbiologic diagnosis
    – Virology/Parasitic Labs
    – Molecular analysis

 • Epidemiologic investigators
    – Individual case interviews
    – Outbreak investigation
        • Cohort studies
        • Case/control studies

 • Environmental investigators
    – Facility investigation
    – Environmental sampling
    – Product traceback
Epidemiology–Basic Tools of the Trade

Real-time interviewing with a broad-based
exposure questionnaire

  •   Symptoms
  •   Incubation
  •   Duration
  •   Food History
  •   Medical Attention
  •   Suspected source
  •   Others Ill
Pulsed Field Gel Electrophoresis (PFGE)
A Powerful Outbreak Detection Tool


 • Process separates
   chromosomal fragments of
   intact bacterial genomic DNA
   grown from patient isolate
 • Genetic relatedness among
   strains is based on similarities
   of the DNA patterns
 • Outbreak strains are those
   that are epidemiologically
   linked AND genetically linked
Questions to Consider in Assessing
PFGE Clusters
• How common is the
  PFGE subtype?
• How many cases are there?
• Over what time frame
  did cases occur?
• What is the geographic
  distribution of cases?
• What are the case
  demographics?
• Do any of the cases
  have a ―red flag‖ exposure?
An Example of Outbreak Detection

 September 27, 2005
 • Three E. coli O157:H7 isolates with
   indistinguishable PFGE patterns identified by
   Minnesota Public Health Laboratory
 • PFGE pattern new in Minnesota,
   rare in United States
   – 0.35% of patterns in National Database
 • Patients reported eating prepackaged salad;
   no other potential common exposures evident
E. coli O157:H7 Cases Associated
with Dole Prepackaged Lettuce


                  7
Number of Cases




                  6
                  5
                  4
                  3
                  2                      Initial cluster of 3 isolates
                                         among MN residents
                  1                      identified.

                      14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 1   2   3   4

                                            September                        October
                                                      Date of Onset 2005
Outbreak Investigation - Methods

  September 28–29, 2005
  • Additional O157 isolates received
    at the MDOH and subtyped by PFGE
     – 7 isolates demonstrated outbreak PFGE
       subtype

  • Supplemental interview form created
  • Case-control study initiated
E. coli O157:H7 Cases Associated
with Dole Prepackaged Lettuce


                  7
Number of Cases




                  6
                  5
                  4
                                           Case-control study initiated.
                  3
                  2                      Initial cluster of 3 isolates
                                         among MN residents
                  1                      identified.

                      14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 1   2   3   4

                                            September                        October
                                                      Date of Onset 2005
E. coli O157:H7 Cases Associated
with Dole Prepackaged Lettuce



                  7
Number of Cases




                  6
                  5                   Case-control study implicated Dole salad.

                  4
                                            Case-control study initiated.
                  3
                  2                       Initial cluster of 3 isolates
                                          among MN residents
                  1                       identified.

                      14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 1        2   3   4

                                             September                            October
                                                       Date of Onset 2005
E. coli O157:H7 Cases Associated
with Dole Prepackaged Lettuce
                                                                  CDC, FDA notified.




                  7
Number of Cases




                  6
                  5                   Case-control study implicated Dole salad.

                  4
                                            Case-control study initiated.
                  3
                  2                       Initial cluster of 3 isolates
                                          among MN residents
                  1                       identified.

                      14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 1             2   3   4

                                             September                                 October
                                                       Date of Onset 2005
E. coli O157:H7 Cases Associated
with Dole Prepackaged Lettuce
                                                                  CDC, FDA notified.




                  7
Number of Cases




                  6
                  5                   Case-control study implicated Dole salad.

                  4
                                            Case-control study initiated.
                  3
                  2                       Initial cluster of 3 isolates
                                          among MN residents
                  1                       identified.

                      14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 1             2   3   4

                                             September                                 October
                                                       Date of Onset 2005
E. coli O157:H7 Cases Associated with
Dole Prepackaged Lettuce (N=26)

                                                                     Minnesota
                                                                     Additional states
Number of Cases




                  7
                  6
                  5              OR
                  4
                  3
                  2                          WI

                  1                               WI

                      14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 1    2   3   4

                                 September                                   October
                                              Date of Onset 2005
Dole Classic Romaine Salad Recovered
from Case-Households
 Shared common "Best if Used By”
 Date and production code
Product Traceback




  • Single processing plant (Soledad, CA)
  • Production Date of September 7, 2005
  • Lettuce harvested from any 1 of 7 fields
PFGE Patterns of E. coli O157:H7
Isolates from Lettuce

                              Source
                              Initial Minnesota
                              Case-patient


                              Classic Romaine
                              Bag #1

                              Classic Romaine
                              Bag #2
What we all want to Avoid
Litigation as Incentive – 20 Years Later

                              Odwalla
   Jack in the
      Box
Worthless Excuse No. 1

  “I never read
  the memo.”

 • If a document
   contains damning
   information, the
   jury will assume you
   read it, understood
   it, and ignored it
It Can Happen to You, Too

           • On June 30, 2002, the USDA Food Safety
             and Inspection Service announced the
             recall of 354,200 pounds of ground beef
             manufactured at the ConAgra Beef
             Company plant in Greeley, Colorado.
           • The contaminated ground beef was
             produced at the plant on May 31, thirty
             days prior to the recall, and was
             distributed nationally to retailers and
             institutions.
           • E. coli O157:H7 was found at the Greeley
             slaughterhouse on May 9, 2002, yet they
             apparently did nothing with this
             information.
           • Over 19 Million Pounds of meat recalled.
           • More than 40 sickened, 5 HUS and 1
             Death.
And Again
• Peter Pan and Great
  Value Brands Peanut
  Butter
• 714 Salmonella
  Tennessee culture-
  positive illnesses from
  44 states
• 71 hospitalized
• Illnesses reported 2005
  to late 2007
• Multiple Jars Tested
  Positive
And Again

            •   Between January 1, 2007 and
                October 29, 2007, at least 272
                isolates of Salmonella I
                4,[5],12:i:- with an
                indistinguishable genetic
                fingerprint have been collected
                from ill persons in 35 states.
            •   At least 65 people hospitalized.
            •   CDC coordinated a case-control
                study designed to identify the
                source of these infections.
            •   Eating a Banquet brand pot pie
                was significantly associated with
                illness. Three patients’ pot pies
                have yielded Salmonella
                I4,[5],12:i:- isolates with a
                genetic fingerprint
                indistinguishable from the
                outbreak pattern.
And Again

• By August 27, 2010 44
  individuals infected with a
  matching strain of Salmonella
  Chester have been reported
  from 18 states since April 11,
  2010.
• 16 were hospitalized.
• On June 17, 2010, ConAgra
  Foods announced a
  precautionary recall of Marie
  Callender's Cheesy Chicken &
  Rice single-serve frozen entrées
  after being informed by the
  CDC of a possible association
  between this product and the
  outbreak of Salmonella Chester
  infections.
Things are Different Today
It Started with just a Little Salmonella

                     •   714 persons infected with the outbreak
                         strain of Salmonella Typhimurium were
                         reported from 46 states..
                         Additionally, one ill person was reported
                         from Canada.
                     •   Among the persons with
                         confirmed, reported dates
                         available, illnesses began between
                         September 1, 2008 and March 31, 2009.
                         Patients ranged in age from <1 to 98
                         years. The median age of patients was 16
                         years which means that half of ill persons
                         were younger than 16 years. 21% were
                         age <5 years, 17% were >59 years.
                         48% of patients were female. Among
                         persons with available information, 24%
                         reported being hospitalized.
                     •   Nine deaths: Idaho (1), Minnesota
                         (3), North Carolina (1), Ohio (2), and
                         Virginia (2).
Then there were Congressional Hearings
•   “Turn them loose,” Parnell had told his
    plant manager in an internal e-mail
    disclosed at the House hearing. The e-
    mail referred to products that once were
    deemed contaminated but were cleared in
    a second test last year.

•   Parnell ordered products identified with
    salmonella to be shipped and quoting his
    complaints that tests discovering the
    contaminated food were “costing us huge
    $$$$$.”

•   Parnell insisted that the outbreak did not
    start at his plant, calling that a
    misunderstanding by the media and public
    health officials. “No salmonella has been
    found anywhere else in our products, or in
    our plants, or in any unopened containers
    of our product.”

•   Parnell complained to a worker after they
    notified him that salmonella had been
    found in more products. “I go thru this
    about once a week,” he wrote in a June
    2008 e-mail. “I will hold my breath ……….
    again.”
Now a 76 Count Federal Indictment
• Stewart Parnell, the former   • Allegations Include:
  owner of Peanut Corp. of      • Mail Fraud
  America                       • Wire Fraud
• Michael Parnell, who is       • Introduction of Adulterated
  Stewart Parnell’s brother       and Misbranded Food into
  and a former supervisor         Interstate Commerce with
• Samuel Lightsey, a onetime      Intent to Defraud or
  plant operator                  Mislead
• Mary Wilkerson, a former      • Conspiracy
  quality-assurance manager
• Daniel Kilgore, plant
  manager (has already
  entered a guilty plea
What the Future Holds - Marler said:
•   “These charges will make other food executives take
    notice.

•   “In 20 years, this is the first time I’ve seen a criminal
    indictment of this magnitude, however, I have also
    been contacted by federal law-enforcement officials
    investigating a 2010 salmonella outbreak linked to
    eggs from Iowa and a 2011 Colorado listeria
    outbreak linked to cantaloupes.”

•   “These indictments will have a far reaching impact on
    the food industry.”

•   “Corporate executives and directors of food safety
    will need to think hard about the safety of their
    product when it enters the stream of commerce.
    Felony counts like this one are rare, but
    misdemeanor charges that can include fines and jail
    time can and should happen.”

•   “If I were an executive of a company, today I’d be
    asking my lawyers, how does this not happen to
    me?”
Even Comedians Like Safe Food
Planning AGAINST Litigation –
What Is Really Important
 • Identify Hazards
   – HACCP
   – Do you have
     qualified and committed
     people?

 • What is the Culture?
 • Involve Vendors
   and Suppliers
   – Do they really
     have a plan?
   – Ever visit them?
Planning AGAINST Litigation –
Establish Relationships
They are your best friends!
Lessons Learned From Litigation

You can insure the brand’s and the company’s
reputation

  1. Arm yourself with good, current information
  2. Since you have a choice between doing
     nothing or being proactive, be proactive
  3. Make food safety part of everything you, your
     suppliers and customers do
  4. Treat your customers with respect
Questions

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Protecting Your Brand Through Customer Safety

  • 1. Protecting Your Customer IS Protecting Yourself and Your Brand Cautionary Tales
  • 2. First off – Something for Free "A stunningly researched work, "Poisoned" reads as though Clarence Darrow had written "The Jungle.” "Just in time for BBQ season, an investigative journalist traces the path of a devastating outbreak of food-borne illness linked to hamburger meat.”
  • 3. Food Production is a Risky Business • Competitive Markets • Stockholder Pressures for Increasing Profits over Long-term Safety • Lack of Clear Reward For Marketing and Practicing Food Safety • Brand Awareness Risks
  • 4. Social Media: It’s a new world “Social media properties allow consumers to ask for brand accountability in the same venue that brand is using to promote itself.” – Justin Kistner Information is out there in real time and everyone has access: • Customers • Plaintiffs’ lawyers • Government
  • 5. Are You Ready? Social Media Managers should be prepared: • Practice responding to disgruntled customers • Run potential responses past your legal team • Try not to use ―canned‖ responses—but have them ready if you need them • Acknowledge customer concerns or complaints publicly, then: – Redirect conversations outside of social media channels if necessary (i.e. send to legal) – Escalate urgent questions/issues so they are addressed by the appropriate person, not the social media manager
  • 6. Information at your customers’ fingertips Consumers expect engagement with a person—especially during a recall • Which lot numbers/UPC codes/expiration dates • Which stores sold recalled products • Where (geographically) were products distributed Don’t expect them to find your recall notice. Respond to each request for information.
  • 7. Setting Expectations: Be Proactive Is your social media profile staffed 24/7? • Does it need to be? – Staff your profiles when they’re most active – Let your fans/followers know how long they should expect to wait for a response (but make a point of responding faster) • If there are reasons why you can’t or won’t respond to messages of a certain nature publicly on your page, tell your fans/followers up front.
  • 8. It is a Global Food Economy
  • 9. To Put Things in Perspective • Microbial pathogens in food cause an estimated 48 million cases of human illness annually in the United States • 125,000 hospitalized • Cause up to 3,000 deaths
  • 10. Strict Product Liability • Strict Liability – Are you a manufacturer? – Was the product unsafe? – Did product cause injury? • Negligence • Punitive Damages /Criminal Liability – Are you a product seller? – Did you act with conscious disregard – Did you act ―reasonably‖? of a known safety risk?
  • 11. Who is a Manufacturer? A “manufacturer” is defined as a “product seller who designs, produces, makes, fabricates, constructs, or remanufactures the relevant product or component part of a product before its sale to a user or consumer.” RCW 7.72.010(2); see also Washburn v. Beatt Equipment Co., 120 Wn.2d 246 (1992)
  • 12. It’s called STRICT Liability for a Reason • The only defense is prevention • It does not matter if you took all reasonable precautions • If you manufacture a product that makes someone sick you are going to pay • Wishful thinking does not help
  • 13. Pathway of a Foodborne Illness Investigation
  • 14. Pathway of a Foodborne Illness Investigation If there are more ill persons than expected, an OUTBREAK might be underway.
  • 15. Pathway of a Foodborne Illness Investigation
  • 16. Investigative Partners • Laboratory investigators – Microbiologic diagnosis – Virology/Parasitic Labs – Molecular analysis • Epidemiologic investigators – Individual case interviews – Outbreak investigation • Cohort studies • Case/control studies • Environmental investigators – Facility investigation – Environmental sampling – Product traceback
  • 17. Epidemiology–Basic Tools of the Trade Real-time interviewing with a broad-based exposure questionnaire • Symptoms • Incubation • Duration • Food History • Medical Attention • Suspected source • Others Ill
  • 18. Pulsed Field Gel Electrophoresis (PFGE) A Powerful Outbreak Detection Tool • Process separates chromosomal fragments of intact bacterial genomic DNA grown from patient isolate • Genetic relatedness among strains is based on similarities of the DNA patterns • Outbreak strains are those that are epidemiologically linked AND genetically linked
  • 19. Questions to Consider in Assessing PFGE Clusters • How common is the PFGE subtype? • How many cases are there? • Over what time frame did cases occur? • What is the geographic distribution of cases? • What are the case demographics? • Do any of the cases have a ―red flag‖ exposure?
  • 20. An Example of Outbreak Detection September 27, 2005 • Three E. coli O157:H7 isolates with indistinguishable PFGE patterns identified by Minnesota Public Health Laboratory • PFGE pattern new in Minnesota, rare in United States – 0.35% of patterns in National Database • Patients reported eating prepackaged salad; no other potential common exposures evident
  • 21. E. coli O157:H7 Cases Associated with Dole Prepackaged Lettuce 7 Number of Cases 6 5 4 3 2 Initial cluster of 3 isolates among MN residents 1 identified. 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 1 2 3 4 September October Date of Onset 2005
  • 22. Outbreak Investigation - Methods September 28–29, 2005 • Additional O157 isolates received at the MDOH and subtyped by PFGE – 7 isolates demonstrated outbreak PFGE subtype • Supplemental interview form created • Case-control study initiated
  • 23. E. coli O157:H7 Cases Associated with Dole Prepackaged Lettuce 7 Number of Cases 6 5 4 Case-control study initiated. 3 2 Initial cluster of 3 isolates among MN residents 1 identified. 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 1 2 3 4 September October Date of Onset 2005
  • 24. E. coli O157:H7 Cases Associated with Dole Prepackaged Lettuce 7 Number of Cases 6 5 Case-control study implicated Dole salad. 4 Case-control study initiated. 3 2 Initial cluster of 3 isolates among MN residents 1 identified. 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 1 2 3 4 September October Date of Onset 2005
  • 25. E. coli O157:H7 Cases Associated with Dole Prepackaged Lettuce CDC, FDA notified. 7 Number of Cases 6 5 Case-control study implicated Dole salad. 4 Case-control study initiated. 3 2 Initial cluster of 3 isolates among MN residents 1 identified. 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 1 2 3 4 September October Date of Onset 2005
  • 26. E. coli O157:H7 Cases Associated with Dole Prepackaged Lettuce CDC, FDA notified. 7 Number of Cases 6 5 Case-control study implicated Dole salad. 4 Case-control study initiated. 3 2 Initial cluster of 3 isolates among MN residents 1 identified. 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 1 2 3 4 September October Date of Onset 2005
  • 27. E. coli O157:H7 Cases Associated with Dole Prepackaged Lettuce (N=26) Minnesota Additional states Number of Cases 7 6 5 OR 4 3 2 WI 1 WI 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 1 2 3 4 September October Date of Onset 2005
  • 28. Dole Classic Romaine Salad Recovered from Case-Households Shared common "Best if Used By” Date and production code
  • 29. Product Traceback • Single processing plant (Soledad, CA) • Production Date of September 7, 2005 • Lettuce harvested from any 1 of 7 fields
  • 30. PFGE Patterns of E. coli O157:H7 Isolates from Lettuce Source Initial Minnesota Case-patient Classic Romaine Bag #1 Classic Romaine Bag #2
  • 31. What we all want to Avoid
  • 32. Litigation as Incentive – 20 Years Later Odwalla Jack in the Box
  • 33. Worthless Excuse No. 1 “I never read the memo.” • If a document contains damning information, the jury will assume you read it, understood it, and ignored it
  • 34.
  • 35.
  • 36.
  • 37.
  • 38.
  • 39. It Can Happen to You, Too • On June 30, 2002, the USDA Food Safety and Inspection Service announced the recall of 354,200 pounds of ground beef manufactured at the ConAgra Beef Company plant in Greeley, Colorado. • The contaminated ground beef was produced at the plant on May 31, thirty days prior to the recall, and was distributed nationally to retailers and institutions. • E. coli O157:H7 was found at the Greeley slaughterhouse on May 9, 2002, yet they apparently did nothing with this information. • Over 19 Million Pounds of meat recalled. • More than 40 sickened, 5 HUS and 1 Death.
  • 40. And Again • Peter Pan and Great Value Brands Peanut Butter • 714 Salmonella Tennessee culture- positive illnesses from 44 states • 71 hospitalized • Illnesses reported 2005 to late 2007 • Multiple Jars Tested Positive
  • 41. And Again • Between January 1, 2007 and October 29, 2007, at least 272 isolates of Salmonella I 4,[5],12:i:- with an indistinguishable genetic fingerprint have been collected from ill persons in 35 states. • At least 65 people hospitalized. • CDC coordinated a case-control study designed to identify the source of these infections. • Eating a Banquet brand pot pie was significantly associated with illness. Three patients’ pot pies have yielded Salmonella I4,[5],12:i:- isolates with a genetic fingerprint indistinguishable from the outbreak pattern.
  • 42. And Again • By August 27, 2010 44 individuals infected with a matching strain of Salmonella Chester have been reported from 18 states since April 11, 2010. • 16 were hospitalized. • On June 17, 2010, ConAgra Foods announced a precautionary recall of Marie Callender's Cheesy Chicken & Rice single-serve frozen entrées after being informed by the CDC of a possible association between this product and the outbreak of Salmonella Chester infections.
  • 44. It Started with just a Little Salmonella • 714 persons infected with the outbreak strain of Salmonella Typhimurium were reported from 46 states.. Additionally, one ill person was reported from Canada. • Among the persons with confirmed, reported dates available, illnesses began between September 1, 2008 and March 31, 2009. Patients ranged in age from <1 to 98 years. The median age of patients was 16 years which means that half of ill persons were younger than 16 years. 21% were age <5 years, 17% were >59 years. 48% of patients were female. Among persons with available information, 24% reported being hospitalized. • Nine deaths: Idaho (1), Minnesota (3), North Carolina (1), Ohio (2), and Virginia (2).
  • 45. Then there were Congressional Hearings • “Turn them loose,” Parnell had told his plant manager in an internal e-mail disclosed at the House hearing. The e- mail referred to products that once were deemed contaminated but were cleared in a second test last year. • Parnell ordered products identified with salmonella to be shipped and quoting his complaints that tests discovering the contaminated food were “costing us huge $$$$$.” • Parnell insisted that the outbreak did not start at his plant, calling that a misunderstanding by the media and public health officials. “No salmonella has been found anywhere else in our products, or in our plants, or in any unopened containers of our product.” • Parnell complained to a worker after they notified him that salmonella had been found in more products. “I go thru this about once a week,” he wrote in a June 2008 e-mail. “I will hold my breath ………. again.”
  • 46. Now a 76 Count Federal Indictment • Stewart Parnell, the former • Allegations Include: owner of Peanut Corp. of • Mail Fraud America • Wire Fraud • Michael Parnell, who is • Introduction of Adulterated Stewart Parnell’s brother and Misbranded Food into and a former supervisor Interstate Commerce with • Samuel Lightsey, a onetime Intent to Defraud or plant operator Mislead • Mary Wilkerson, a former • Conspiracy quality-assurance manager • Daniel Kilgore, plant manager (has already entered a guilty plea
  • 47. What the Future Holds - Marler said: • “These charges will make other food executives take notice. • “In 20 years, this is the first time I’ve seen a criminal indictment of this magnitude, however, I have also been contacted by federal law-enforcement officials investigating a 2010 salmonella outbreak linked to eggs from Iowa and a 2011 Colorado listeria outbreak linked to cantaloupes.” • “These indictments will have a far reaching impact on the food industry.” • “Corporate executives and directors of food safety will need to think hard about the safety of their product when it enters the stream of commerce. Felony counts like this one are rare, but misdemeanor charges that can include fines and jail time can and should happen.” • “If I were an executive of a company, today I’d be asking my lawyers, how does this not happen to me?”
  • 48. Even Comedians Like Safe Food
  • 49. Planning AGAINST Litigation – What Is Really Important • Identify Hazards – HACCP – Do you have qualified and committed people? • What is the Culture? • Involve Vendors and Suppliers – Do they really have a plan? – Ever visit them?
  • 50. Planning AGAINST Litigation – Establish Relationships They are your best friends!
  • 51. Lessons Learned From Litigation You can insure the brand’s and the company’s reputation 1. Arm yourself with good, current information 2. Since you have a choice between doing nothing or being proactive, be proactive 3. Make food safety part of everything you, your suppliers and customers do 4. Treat your customers with respect