From Praise to Prolapse: Analyzing Odwallas Discourse of Renewal Strategies in the Tainted E. coli Apple Juice Case Heidi Bolduc, University of Central Florida Odwalla As A Brand Founding CEOs: Greg Steltenpohl Stephen Williamson Unique
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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<br>
02
Odwalla As A Brand Founding CEOs:
Greg Steltenpohl
Stephen Williamson
Unique Culture:
Youthful demographic
Environmental issues
Cultural diversity<br>
03
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<br>
04
Crisis Phase (October 31, 1996) 2 Tipping Points:
FDA launches 14-month investigation
Edelman Public Relations hired to manage crisis communication<br>
1. Call for competitors to stop selling unpasteurized apple juice
2. Consider heat treatments for its apple
juice product<br>
09
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)<br>
10
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<br>
11
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<br>
12
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<br>
13
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<br>
14
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<br>
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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<br>
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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<br>
17
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<br>
18
Odwalla’s… Tainted Renewal? U.S. Military Letter Rejecting Odwalla as a Supplier
(August 6, 1996)<br>
19
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<br>
20
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.105-118). 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), 114-129. doi:10.1080/10510970902834841
Thomsen, S.R., & Rawson, B. (1998). Purifying a tainted corporate image: Odwalla’s response to an E. coli poisoning. Public Relations Quarterly, 43(3), 35-46.<br>
