August, 1998

Odwalla pleads guilty, is fined $1.5 million

Juice manufacturer Odwalla Inc. pleaded guilty and agreed to pay a record $1.5 million fine recently over a 1996 E. coli outbreak that killed a Colorado girl and sickened at least 66 other people.
Federal officials were cited as saying it is the first criminal conviction in a large-scale outbreak caused by contaminated food and the biggest criminal fine in a food injury case in the history of the U.S. Food and Drug Administration.
The outbreak was blamed on contaminated unpasteurized apple juice made at an Odwalla plant in Dinuba, near Fresno. Odwalla, based in Half Moon Bay, pleaded guilty to 16 misdemeanor charges of selling adulterated food products and will serve five years' probation.
Assistant U.S. Attorney Joseph O. Johns was quoted as saying, "No mother in this country should ever need to question the safety of the food she provides to her child."
Odwalla products are sold in 4,600 stores in seven states and western Canada. Since the E. coli outbreak, the company has been flash-pasteurizing apple juice to kill bacteria.
A $250,000 portion of the fine will be divided between an advocacy group, Safe Tables Our Priority, and food safety research centers at the University of Maryland and Pennsylvania State University.
The Food and Drug Administration was quoted as saying in a statement that, "The plea entered today sends a strong message: the government will vigorously prosecute those individuals and firms who jeopardize the safety of our nation's food supply."
Of the 21 civil lawsuits arising from the incident all but four have been settled by the company to date.

The Great Lakes Fruit Growers News