Purifying a tainted corporate image: Odwalla's response to an E. Coli poisoning

Abstract

Founded in September 1980 in Davenport, California, Odwalla capitalized on one of the most popular beverage trends sweeping the US and Canada - gourmet natural fresh fruit and vegetable-based beverages. Unlike many juicemakers, however, Odwalla did not pasteurize or heat-treat its juices. What it would learn was that while its cold processing could guarantee freshness and naturalness it could not protect the final products from the dangers of e. coli. Only pasteurization could do that. After the death of a 16-month-old Colorado infant and more than 60 illnesses, Odwalla realized that what had been so important to the company's identity was now publicly perceived as a threat to the health and lives of its customers. To survive, Odwalla would have to reinvent itself. Odwalla's strategy and methods are discussed.