MBA Crisis Management Presentation

1. CRISIS MANAGEMENT Lessons in brand resilience taken from Odwalla Inc. Shaer Ahmed TakiDaLlis Adam Ward Mark Henderson STAM CONSULTING

2. ACT FIX TALK CREATE

3. who? Organic juice company 30% Annual growth Projected sales of $90 million Expanding distribution

4. OCTOBER 16, 1996 : Anna Gimmstead, a 16 month year old child, was rushed to the emergency room …She died 23 days later

5. 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

6. ACT

7. ACT Twowebsites created in span of 4 days Completed a full recall in 48Hrs Three task teams formed to respond

8. 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

9. TALK

10. TALK INTERNAL Core management team met every 15Min Daily Conference calls were held with CEO

11. TALK EXTERNAL Communication with the press was Constant Hotlines were created to answer questions Coolers were updated with public notes

12. FIX

13. FIX Accepted blame and apologized Customers were reimbursed Investigated flash pasteurization process

14. 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

15. CREATE

16. CREATE Developed a flash pasteurization process Organized a crisis management plan

17. COST OF 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

18. Recovery FROM THE CRISIS Voted best San Francisco business 1 year later Retained 80% of customer base 1 year out Became nations #1 fresh fruit distributor

19. “ Odwalla didn’t survive by accident.” - Stephen Williamson CEO, Odwalla Inc.

20. ACT FIX TALK CREATE

21. Q & A

22. 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 TIMELINE OF THE CRISIS

23. 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.