Odwalla, INC., And The E Coli Breakout

9 Pages 2131 Words

ible for stocking the coolers and removing the unsold, expired juice. This direct distribution system was more expensive than using independent distributors. However, the system enabled Odwalla to maintain control over product mix and quality, based on the careful records kept by the RSPs.
Odwalla’s plants operated under a strict code of Good Manufacturing Practices, utilizing extreme hygienic standards. The company only accepted apples picked from the tree to avoid possible contamination. If inspectors found evidence of dirt, grass, or debris on the bins, the apples were rejected. The apples were then washed with a sanitizing solution of phosphoric acid and scrubbed with whirling brushes. Odwalla knew that small amounts of E. coli was present in the apples but believed that the acidic properties in apple juice would inhibit growth. They believed that their processes, designed to ensure hygiene and freshness, would enable them to avoid heat treatment while distributing a safe product. On October 30, 1996 a series of events unfolded that forced the company to reconsider its view on heat treatment.
Crisis Timeline
On October 30, 1996, Odwalla management became aware that there was a crisis. The King County Department of Health had reported that there were a number of cases of E. coli poisoning in the Seattle area, and some of the affected families stated that they had drunk Odwalla apple juice. The company CEO, Stephen Williamson, and the company chairman, Greg Steltenpohl immediately consulted the FDA (Food and Drug Administration) and the company’s lawyers. Their findings indicated that it was possible for sufficient amounts of E. coli to be present in unpastuerized apple juice to cause illness from E. coli poisoning. Within four hours of receiving the initial notification, management released a public statement that issued a recall on all products containing apple juice. The recall was completed in 48 hours with the help...