Odwalla is no BP. Just about everything about the two companies is different. But could the oil giant learn a thing or two from the makers of Mango Tango?
If you’re a consumer of a certain age, you may remember Odwalla’s meteoric rise in the mid-1990s. With annual sales rising 30% per year, the company had quickly established a strong brand with enormous customer loyalty. That all changed in October of 1996, when health officials in Washington state informed the company that they had discovered a link between several cases of E. coli and Odwalla fresh apple juice.
By the end of the crisis, one child had died, more than 60 people had become ill, sales plummetted by 90%, and Odwalla’s stock price fell 34%. With pending lawsuits and a tarnished brand, the company seemed doomed. But, thanks to a considered and rapid response to the crisis, the company survived.
Though it’s hard to compare a relatively isolated incident of E. coli with the devastating Deep Horizon oil spill, it’s not hard to draw a parallel between events that threatened to bring down two companies and compare the response to each. The re-emergence of Odwalla, which boasts initiatives like its current “Plant A Tree Program,” is succeeding in ways BP’s can’t possibly.
As Mallen Baker explains in his Corporate Social Responsibility case study of Odwalla’s crisis management, “Odwalla acted immediately. Although at the point where they were first notified the link was uncertain, Odwalla’s CEO Stephen Williamson ordered a complete recall of all products containing apple or carrot juice.” Williamson has said, ”We had no crisis-management procedure in place, so I followed our vision statement and our core values of honesty, integrity, and sustainability. Our number-one concern was for the safety and well-being of people who drink our juices.” Within hours of the ‘outbreak,’ the company had an explanatory web site (notably, its first) that received 20,000 hits in 48 hours. Baker writes,
The next step was to tackle the problem of contamination. The company’s entire approach had been founded on fresh unpasteurised juice because only juice which had been untampered with could have the best flavour. The company decided quickly that this had been wrong. The company moved quickly to introduce a process called “flash pasteurisation” which would guarantee that E-coli had been destroyed whilst leaving the best flavoured juice possible.
Experts described Odwalla’s response as “the most comprehensive quality control and safety system in the fresh juice industry.”
Despite having to pay the largest fine ever assessed in a food industry case by the US Food and Drug Administration ($1.5 million), Odwalla recovered quickly. The year after the crisis, Odwalla was voted “Best Brand Name in the Bay Area” by San Francisco Magazine, “the first indication amongst many,” says Baker, “that Odwalla’s reputation had survived.”

Its recent Plant a Tree program reflects the degree to which the brand’s identity- as a thoughtful brand, built on the core principles to which Williamson referred- and its corporate operations are in concert.
Visitors to Odwalla’s site are invited to select where the company will plant a tree on their behalf. 200,000 trees will be planted by the program, at Odwalla’s cost – the choice of which states/state parks will be based on vote tally, which visitors can influence by spreading the message via social media. A Facebook Microforest app helps friends join forces to plant a virtual Microforest. Posting your participation in tree-planting on Twitter encourages your followers to do the same. Odwalla’s stated goal is to allow fans and participants to “naturally protect the world from ordinary”.
[Sources: PSFK, Mallen Baker, Odwalla]