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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
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Odwalla As A Brand Founding CEOs: Greg Steltenpohl Stephen Williamson
Unique Culture: Youthful demographic Environmental issues Cultural diversity
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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
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Crisis Phase (October 31, 1996)
2 Tipping Points: FDA launches 14-month investigation Edelman Public Relations hired to manage crisis communication
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Crisis Phase (November 1, 1996)
Odwalla issues voluntary recall: 7 Western States: California 5. New Mexico Colorado Oregon Texas Washington Nevada 200 delivery trucks Apple & 12 vegetable juice products included
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Crisis Phase (November 2-3, 1996)
Corrective Actions: Dedicated website 2. Toll-free 800 phone numbers 3. Refunds & payment of medical costs Odwalla Website, 1996
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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 Odwalla AND Competitor juice products
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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
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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)
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Discourse of Renewal Theory (Ulmer, Seeger, & Sellnow, 2007)
Aims to understand how organizations move from beyond crisis towards: Rebuilding Recovery & Revitalization *Emphasizes post-crisis phase
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Discourse of Renewal Theory (Ulmer, Seeger, & Sellnow, 2007)
Characteristics of Crisis Communication: Provisional as opposed to strategic Prospective as opposed to retrospective Focuses on opportunity in crisis Leader-based *Broad categories designed to describe crisis communication accompanying renewal
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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
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Odwalla’s 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
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Odwalla’s Renewal Characteristics
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
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Odwalla’s Renewal Conditions
Massively destructive potential Public Health Concern E. coli transferrable patientpatient Positive stakeholder relationships Supportive reactions to recall & instructing information resources
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Odwalla’s Renewal Conditions
3. Corrective action necessary Pasteurization issue had to be resolved Production safety program (HACCP) Private status beneficial Quick hiring of Edelman PR Motivation to overcome crisis
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Odwalla’s… 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
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Odwalla’s… Tainted Renewal?
U.S. Military Letter Rejecting Odwalla as a Supplier (August 6, 1996)
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Takeaways The Odwalla E. Coli Apple Juice Crisis…
Successfully analyzed using Discourse of Renewal Theory 2. Criticized due to post-crisis developments 3. Impacts brand value today
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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 ). 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), doi: / Thomsen, S.R., & Rawson, B. (1998). Purifying a tainted corporate image: Odwalla’s response to an E. coli poisoning. Public Relations Quarterly, 43(3),
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