The 1996 Odwalla E. coli outbreak began on October 7, 1996, when American food company Odwalla produced a batch of unpasteurized apple juice using blemished fruit contaminated with the E. coli bacterium, which ultimately killed a 16-month-old girl and sickened 70 people in California, Colorado, Washington state, and British Columbia, of whom 25 were hospitalized and 14 developed hemolytic uremic syndrome.
However, this plan was dropped by Chip Bettle, Odwalla's senior vice president, who feared that the chemicals would harm the fruit and alter the flavor of the juice.
[8] The outbreak came as a surprise as the plant had been inspected by the FDA three months earlier, and Odwalla supervisors were not aware that the E. coli bacteria could grow in acidic, chilled apple juice.
[2] Based on a recommendation from the FDA, on October 30, Odwalla's Chief Executive Officer Stephen Williamson voluntarily recalled 13 products which contained apple juice from about 4,600 stores.
Because of the lack of pasteurization and numerous other flaws in its safety practices (one contractor warned that Odwalla's citrus processing equipment was poorly maintained and was breeding bacteria in "black rotten crud"), the company was charged with 16 criminal counts of distributing adulterated juice.
[19] Most of the claims were resolved in early 2000, and in addition to the fines, the company spent roughly another $12 million settling the lawsuits from the families whose children were infected.