Odwalla Strategy Memo
DATE: November 4, 1996
TO: Stephen Williamson, President and Chief Operating
FROM: Monica Pearlman 21 Bascom Drive East 101
SUBJECT: Addressing Contamination linked to Odwalla Juice Products
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Odwalla, Inc., a health-conscious juice producer, must challenge effects that its apple juice product is contaminated and has been linked to the causes of several outbreaks of the E. coli virus. It is a truly unlucky circumstance when product contaminations happen and especially unfortunate when customers become sick as an outcome. These situations can ruin customer confidence in a company; but, a well thought out strategy will allow Odwalla to continue positive relationships with customers, keep the brand significance, and maintain consumer loyalty.
Background
Odwalla, Inc., is worth nearly $400 million, has grown steadily rising to $59 million in 1996
Approximately 66 people reported sickness of consuming Odwalla juice products
On October 30, 1996, the Seattle-King County Department of Public Health and the Washington State Department of Health reported to Odwalla, Inc. about a possible link between the Odwalla apple juice products and several cases of E. coli
Unpasteurized fruit may be the cause of the E.Coli bacteria
The reason why we don’t pasteurize is to avoid changing the taste of our products
Discussion
Odwalla’s most significant resources are its’ strong customer loyalty and brand recognition for providing “all natural” juice products. Since the company’s main ability focuses on the all-natural production procedure and the idea of “nourishing the body whole”, it is look at as a high quality product. So, the assumption that Odwalla is producing juice products with E. Coli bacteria and placing them into the marketplace could cause a major problem with its consumers which will lead to a negative impact on the
TO: Stephen Williamson, President and Chief Operating
FROM: Monica Pearlman 21 Bascom Drive East 101
SUBJECT: Addressing Contamination linked to Odwalla Juice Products
------------------------------------------------------------------------------------------------------------------------------------------
Odwalla, Inc., a health-conscious juice producer, must challenge effects that its apple juice product is contaminated and has been linked to the causes of several outbreaks of the E. coli virus. It is a truly unlucky circumstance when product contaminations happen and especially unfortunate when customers become sick as an outcome. These situations can ruin customer confidence in a company; but, a well thought out strategy will allow Odwalla to continue positive relationships with customers, keep the brand significance, and maintain consumer loyalty.
Background
Odwalla, Inc., is worth nearly $400 million, has grown steadily rising to $59 million in 1996
Approximately 66 people reported sickness of consuming Odwalla juice products
On October 30, 1996, the Seattle-King County Department of Public Health and the Washington State Department of Health reported to Odwalla, Inc. about a possible link between the Odwalla apple juice products and several cases of E. coli
Unpasteurized fruit may be the cause of the E.Coli bacteria
The reason why we don’t pasteurize is to avoid changing the taste of our products
Discussion
Odwalla’s most significant resources are its’ strong customer loyalty and brand recognition for providing “all natural” juice products. Since the company’s main ability focuses on the all-natural production procedure and the idea of “nourishing the body whole”, it is look at as a high quality product. So, the assumption that Odwalla is producing juice products with E. Coli bacteria and placing them into the marketplace could cause a major problem with its consumers which will lead to a negative impact on the