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Odwalla Inc. () was an American food product company selling
fruit juice Juice is a drink made from the extraction or pressing of the natural liquid contained in fruit and vegetables. It can also refer to liquids that are flavored with concentrate or other biological food sources, such as meat or seafood, such as ...
s,
smoothie A smoothie is a beverage made by puréeing ingredients in a blender. A smoothie commonly has a liquid base, such as fruit juice or milk, yogurt, ice cream or cottage cheese. Other ingredients may be added, including fruits, vegetables, non-dai ...
s and food bars founded in
Santa Cruz, California Santa Cruz (Spanish for "Holy Cross") is the county seat and largest city of Santa Cruz County, in Northern California. As of the 2020 census, the city population was 62,956. Situated on the northern edge of Monterey Bay, Santa Cruz is a pop ...
in 1980 and from 1995–2020 was headquartered in
Half Moon Bay, California Half Moon Bay is a coastal city in San Mateo County, California, United States, approximately south of San Francisco. Its population was 11,795 as of the 2020 census. Immediately at the north of Half Moon Bay is Pillar Point Harbor and the un ...
. Odwalla's products included juices, smoothies,
soy milk Soy milk (simplified Chinese: 豆浆; traditional Chinese: 豆漿) also known as soya milk or soymilk, is a plant-based drink produced by soaking and grinding soybeans, boiling the mixture, and filtering out remaining particulates. It is a sta ...
,
bottled water Bottled water is drinking water (e.g., well water, distilled water, mineral water, or spring water) packaged in plastic or glass water bottles. Bottled water may be carbonated or not. Sizes range from small single serving bottles to large car ...
, organic beverages, and several types of
energy bar Energy bars are supplemental bars containing cereals, micronutrients, and flavor ingredients intended to supply quick food energy. Because most energy bars contain added protein (nutrient), protein, carbohydrates, dietary fiber, and other nutri ...
s, known as "food bars". The company experienced strong growth after its incorporation in 1985, expanding its distribution network from
California California is a U.S. state, state in the Western United States, located along the West Coast of the United States, Pacific Coast. With nearly 39.2million residents across a total area of approximately , it is the List of states and territori ...
to most of North America, and went public in 1993. A period of decline occurred as the result of a fatal outbreak of ''E. coli'' O157:H7 in 1996 that was caused by using bruised fruit that had been contaminated. Odwalla originally sold unpasteurized juices, claiming that the process of pasteurization altered the flavor of the juice. Following the ''E. coli'' outbreak and the death of at least one child, Odwalla adopted
flash pasteurization Flash pasteurization, also called "high-temperature short-time" (HTST) processing, is a method of heat pasteurization of perishable beverages like fruit and vegetable juices, beer, wine, and some dairy products such as milk. Compared with other ...
and other sanitization procedures. Odwalla recalled its juices and experienced a 90% reduction in sales following the event. The company gradually recovered and, the following year, became profitable again. In 2001, Odwalla was acquired by
The Coca-Cola Company The Coca-Cola Company is an American multinational beverage corporation founded in 1892, best known as the producer of Coca-Cola. The Coca-Cola Company also manufactures, sells, and markets other non-alcoholic beverage concentrates and syrups, ...
for US$181 million and became a
wholly owned subsidiary A subsidiary, subsidiary company or daughter company is a company (law), company owned or controlled by another company, which is called the parent company or holding company. Two or more subsidiaries that either belong to the same parent company ...
. In July 2020,
Coca-Cola Coca-Cola, or Coke, is a carbonated soft drink manufactured by the Coca-Cola Company. Originally marketed as a temperance drink and intended as a patent medicine, it was invented in the late 19th century by John Stith Pemberton in Atlanta ...
announced it would discontinue the Odwalla brand by August 2020. The brand was sold to Full Sail IP Partners in 2021.


History


Origin

Odwalla was founded in Santa Cruz, California, in 1980 by Greg Steltenpohl, Gerry Percy, and Bonnie Bassett. Odwalla's production facility is in
Dinuba, California Dinuba is a city in Tulare County, California, United States. The population was 21,453 at the 2010 census. It is part of the Visalia-Porterville metropolitan statistical area. The Alta District Museum is located in Dinuba in a restored rai ...
. The trio took the idea of selling fruit juices from a business guidebook, and they began by squeezing orange juice with a secondhand juicer in a shed in Steltenpohl's backyard. They sold their product from the back of a
Volkswagen Volkswagen (),English: , . abbreviated as VW (), is a German Automotive industry, motor vehicle manufacturer headquartered in Wolfsburg, Lower Saxony, Germany. Founded in 1937 by the German Labour Front under the Nazi Party and revived into a ...
van to local restaurants, employing slogans such as "soil to soul, people to planet and nourishing the body whole". The name for their start-up, "Odwalla", was taken from that of a character who guided "the people of the sun" out of the "gray haze" in the song-poem "Illistrum", a favorite of the founders, which was composed by Roscoe Mitchell and performed by the
Art Ensemble of Chicago The Art Ensemble of Chicago is an avant-garde jazz group that grew out of the Association for the Advancement of Creative Musicians ( AACM) in the late 1960s. The ensemble integrates many jazz styles and plays many instruments, including "little ...
jazz group, of which Mitchell was a member. Steltenpohl, Percy, and Bassett related this to their products, which they believe "help humans break free from the dull mass of over-processed foods so prevalent today".


Incorporation to 1996

Odwalla was incorporated in September 1985 after five years of growth and expanded to sell products in
San Francisco San Francisco (; Spanish language, Spanish for "Francis of Assisi, Saint Francis"), officially the City and County of San Francisco, is the commercial, financial, and cultural center of Northern California. The city proper is the List of Ca ...
in 1988.
Hambrecht & Quist Hambrecht & Quist (H&Q) was an investment bank based in San Francisco, California noted for its focus on the technology and Internet sectors. H&Q was founded by Bill Hambrecht and George Quist in California, in 1968. H&Q was an early player in ...
Inc., a
venture capital Venture capital (often abbreviated as VC) is a form of private equity financing that is provided by venture capital firms or funds to startups, early-stage, and emerging companies that have been deemed to have high growth potential or which ha ...
firm in San Francisco, was one of Odwalla's main investors at the time, investing several million dollars in the company. By 1992, the company employed 80 people at its company headquarters in
Davenport, California Davenport is a census-designated place (CDP) in Santa Cruz County, California. Davenport sits at an elevation of . The 2020 United States census reported Davenport's population was 388. Situation Davenport lies along the coast of the Pacific Ocea ...
, and sold around 20 different flavors of juice for between $1.50 and $2.00 a pint. Odwalla went public in December 1993 (
NASDAQ The Nasdaq Stock Market () (National Association of Securities Dealers Automated Quotations Stock Market) is an American stock exchange based in New York City. It is the most active stock trading venue in the US by volume, and ranked second ...
:ODWA); the company had 35 delivery trucks, almost 200 employees, and made about $13 million a year. Soon afterwards, Odwalla expanded into new markets when it bought two companies in the
Pacific Northwest The Pacific Northwest (sometimes Cascadia, or simply abbreviated as PNW) is a geographic region in western North America bounded by its coastal waters of the Pacific Ocean to the west and, loosely, by the Rocky Mountains to the east. Though ...
and
Colorado Colorado (, other variants) is a state in the Mountain West subregion of the Western United States. It encompasses most of the Southern Rocky Mountains, as well as the northeastern portion of the Colorado Plateau and the western edge of t ...
. Odwalla built a new production facility located in
Dinuba, California Dinuba is a city in Tulare County, California, United States. The population was 21,453 at the 2010 census. It is part of the Visalia-Porterville metropolitan statistical area. The Alta District Museum is located in Dinuba in a restored rai ...
, in 1994 in order to better meet production demands. The following year, the company moved its headquarters to
Half Moon Bay, California Half Moon Bay is a coastal city in San Mateo County, California, United States, approximately south of San Francisco. Its population was 11,795 as of the 2020 census. Immediately at the north of Half Moon Bay is Pillar Point Harbor and the un ...
. Continual growth and outside investments during these years allowed the company to expand and grow: Odwalla's revenue tripled from 1994 to 1995, and in 1996 they made more than $59 million in sales, their highest ever. This constant growth made Odwalla one of the largest fresh-juice companies in America by 1996, when the company was selling its products to stores in seven states and parts of Canada. It was estimated that they would reach $100 million in sales by 1999. Much of this growth resulted from the perception that Odwalla's products were healthier than regular juice because they were not pasteurized.


Adversity, recovery, growth and discontinuation

On October 7, 1996, Odwalla made a batch of
apple juice Apple juice is a fruit juice made by the maceration and pressing of an apple. The resulting expelled juice may be further treated by enzymatic and centrifugal clarification to remove the starch and pectin, which holds fine particulate in suspe ...
using blemished fruit, resulting in one death and 66 sickened customers. Odwalla made and marketed unpasteurized fruit juices for the health segment of the juice market. This batch was contaminated with ''
E. coli ''Escherichia coli'' (),Wells, J. C. (2000) Longman Pronunciation Dictionary. Harlow ngland Pearson Education Ltd. also known as ''E. coli'' (), is a Gram-negative, facultative anaerobic, rod-shaped, coliform bacterium of the genus ''Escher ...
''. Despite a net loss for most of 1997, Odwalla worked to rehabilitate its brand name. In addition to advertising its new safety procedures, Odwalla released its line of food bars (its first solid food product line) and entered the $900 million fruit bar market. Another new product was the Future Shake, a "liquid lunch" aimed at younger consumers. Because of these efforts, Odwalla was again profitable by the end of 1997, reporting a profit of $140,000 for the third quarter. Having recovered, the company worked to expand geographically into markets like
Philadelphia Philadelphia, often called Philly, is the largest city in the Commonwealth of Pennsylvania, the sixth-largest city in the U.S., the second-largest city in both the Northeast megalopolis and Mid-Atlantic regions after New York City. Sinc ...
and
Washington, D.C. ) , image_skyline = , image_caption = Clockwise from top left: the Washington Monument and Lincoln Memorial on the National Mall, United States Capitol, Logan Circle, Jefferson Memorial, White House, Adams Morgan, ...
, and by the end of 1998 reported that revenue had surpassed pre-crisis levels. Growth continued over subsequent years, in part through the $29 million acquisition of Fresh Samantha, a large juice company based in
Saco, Maine Saco is a city in York County, Maine, York County, Maine, United States. The population was 20,381 at the 2020 United States Census, 2020 census. It is home to Ferry Beach State Park, Funtown Splashtown USA, Thornton Academy, as well as General ...
, in 2000. This allowed Odwalla to expand into additional
East Coast East Coast may refer to: Entertainment * East Coast hip hop, a subgenre of hip hop * East Coast (ASAP Ferg song), "East Coast" (ASAP Ferg song), 2017 * East Coast (Saves the Day song), "East Coast" (Saves the Day song), 2004 * East Coast FM, a ra ...
markets, but incurred high transportation costs as products had to be shipped across the United States from California. To address this problem the company announced plans to build a second production facility in
Palm Beach County Palm Beach County is a county located in the southeastern part of Florida and lies directly north of Broward County and Miami-Dade County. The county had a population of 1,492,191 as of the 2020 census, making it the third-most populous county ...
,
Florida Florida is a state located in the Southeastern region of the United States. Florida is bordered to the west by the Gulf of Mexico, to the northwest by Alabama, to the north by Georgia, to the east by the Bahamas and Atlantic Ocean, and to ...
. However, facing difficulties in obtaining building permits and allocating sufficient funds, the project was first delayed and eventually cancelled. Odwalla produced and sold products under both its own and the Fresh Samantha brand names for a few years; however, in 2003, the company decided to stop selling juice under the Fresh Samantha name and to only sell Odwalla-brand juice. Odwalla was purchased by
The Coca-Cola Company The Coca-Cola Company is an American multinational beverage corporation founded in 1892, best known as the producer of Coca-Cola. The Coca-Cola Company also manufactures, sells, and markets other non-alcoholic beverage concentrates and syrups, ...
in 2001 for $15.25 a share, a deal which totalled $181 million and was unanimously approved by the Odwalla board of directors. Under the terms of the merger, Odwalla's management stayed on as heads of the company, and it was "folded" into Coca-Cola's
Minute Maid Minute Maid is a product line of beverages, usually associated with lemonade or orange juice, but which now extends to soft drinks of different kinds, including Hi-C. Minute Maid is sold under the Cappy brand in Central Europe and under the bran ...
department. The acquisition was one of several similar mergers which were aimed at expanding Coca-Cola's product line to include non-carbonated drinks. Odwalla benefited by obtaining up to a 124.3 percent premium on shares of the company, as well as from the stability and strength that ownership by The Coca-Cola Company offered. Odwalla also was able to expand into new markets because of Coca-Cola's well-established distribution network. Odwalla continued to grow following the acquisition. This growth resulted in part from new product releases, which included a line of PomaGrand
pomegranate juice Pomegranate juice is made from the fruit of the pomegranate. It is used in cooking both as a fresh juice and as a concentrated syrup. Possible health benefits and risks Various primary studies have been conducted into possible health benefits d ...
(released at the 2006 Sundance Film Festival), two flavors of energy drinks, and three flavors of "Soy Smart" drinks, which contain
soy protein Soy protein is a protein that is isolated from soybean. It is made from soybean meal that has been dehulled and defatted. Dehulled and defatted soybeans are processed into three kinds of high protein commercial products: soy flour, concentrates, ...
,
omega-3 fatty acids Omega−3 fatty acids, also called Omega-3 oils, ω−3 fatty acids or ''n''−3 fatty acids, are polyunsaturated fatty acids (PUFAs) characterized by the presence of a double bond, three atoms away from the terminal methyl group in their chem ...
, and
calcium Calcium is a chemical element with the symbol Ca and atomic number 20. As an alkaline earth metal, calcium is a reactive metal that forms a dark oxide-nitride layer when exposed to air. Its physical and chemical properties are most similar to ...
. Coca-Cola promoted Odwalla products in 2006 when the company aimed at removing carbonated soda products in schools. Odwalla continued to have good growth in 2007, when Coca-Cola, squeezed by poor growth in its North American markets, issued a company-wide hiring freeze; Odwalla, because of its good performance, was one of the few exceptions to the rule. In July 2020, Coca-Cola announced the permanent discontinuation of all Odwalla products, having declared Odwalla one of its "zombie brands" (brands which comprise less than 2% of total revenue).


Production

Odwalla used what it characterized as "fresh-sourced" produce (fruits and vegetables that had recently been harvested) to make many of its products, as well as
organic Organic may refer to: * Organic, of or relating to an organism, a living entity * Organic, of or relating to an anatomical organ Chemistry * Organic matter, matter that has come from a once-living organism, is capable of decay or is the product ...
oats The oat (''Avena sativa''), sometimes called the common oat, is a species of cereal grain grown for its seed, which is known by the same name (usually in the plural, unlike other cereals and pseudocereals). While oats are suitable for human con ...
for food bars and certain
tropical fruits A tropical fruit one that typically grows in warm climates, or Equatorial region, equatorial areas. Tropical fruits Varieties of tropical fruit include: *Acerola (West Indian Cherry or Barbados Cherry) *Ackee *Banana *Barbadine (granadilla; ...
in a frozen
purée A purée (or mash) is cooked food, usually vegetables, fruits or legumes, that has been ground, pressed, blended or sieved to the consistency of a creamy paste or liquid. Purées of specific foods are often known by specific names, e.g., apples ...
form, purchased from an outside source and blended with fruit juice. Because Odwalla used fresh produce, some juices were seasonal. Fruit availability and price were also affected by adverse weather, disease, and natural disasters. Throughout the year, Odwalla juice colors and flavors changed slightly because different types of fruit were used. After the ''E. coli'' outbreak, Odwalla improved the safety of several of its production processes. Before the fruit entered the factory, it was washed, sorted and sanitized. Once it reached the plant, the apples, carrots, and citrus fruits were separated and washed again. The fruit was pressed to get the juice, which was then flash pasteurized and bottled. A sample underwent quality testing, and, if it passed, the batch was shipped in refrigerated trucks to various
distribution centers A distribution center for a set of products is a warehouse or other specialized building, often with refrigeration or air conditioning, which is stocked with products (goods) to be redistributed to retailers, to wholesalers, or directly to con ...
in the United States. Odwalla juice had a relatively short
shelf life Shelf life is the length of time that a commodity may be stored without becoming unfit for use, consumption, or sale. In other words, it might refer to whether a commodity should no longer be on a pantry shelf (unfit for use), or no longer on a ...
compared to other beverages and thus required refrigeration. However, the shelf life was considerably extended after the introduction of flash pasteurization in 1996 and a new plastic bottle in 2001. Generally, Odwalla products were sold in special Odwalla-brand displays at grocery and convenience stores, instead of being intermixed with other products.


Products


Drinks

Odwalla Inc. produced many flavors of fruit and vegetable drinks, as well as dairy-free soy milk (marketed under the "Soy Smart" name), "PomaGrand"
pomegranate juice Pomegranate juice is made from the fruit of the pomegranate. It is used in cooking both as a fresh juice and as a concentrated syrup. Possible health benefits and risks Various primary studies have been conducted into possible health benefits d ...
, "Serious Energy" caffeinated fruit juice, bottled spring water, and Odwalla's
Superfood Superfood is a marketing term for food claimed to confer health benefits resulting from an exceptional nutrient density. The term is not commonly used by experts, dietitians and nutrition scientists, most of whom dispute that particular foods h ...
smoothie line of products (see
green smoothie A smoothie is a beverage made by puréeing ingredients in a blender. A smoothie commonly has a liquid base, such as fruit juice or milk, yogurt, ice cream or cottage cheese. Other ingredients may be added, including fruits, vegetables, non-dai ...
), which are viewed as the core products of the company and are made of various fruit purées,
wheat grass Wheatgrass is the freshly sprouted first leaves of the common wheat plant (''Triticum aestivum''), used as a food, drink, or dietary supplement. Wheatgrass is served freeze dried or fresh, and so it differs from wheat malt, which is convecti ...
, and barley grass. These products accounted for roughly 95 percent of Odwalla's revenue in 2001. Odwalla juice was sold in individual 12 fl oz (formerly 450 millilitre or 15.4 US fl oz) bottles made of plant-based recyclable
HDPE High-density polyethylene (HDPE) or polyethylene high-density (PEHD) is a thermoplastic polymer produced from the monomer ethylene. It is sometimes called "alkathene" or "polythene" when used for HDPE pipes. With a high strength-to-density ratio, ...
plastic Plastics are a wide range of synthetic or semi-synthetic materials that use polymers as a main ingredient. Their plasticity makes it possible for plastics to be moulded, extruded or pressed into solid objects of various shapes. This adaptab ...
, as well as larger 64 US fluid ounce (1.9 litre) containers. Odwalla's juice, because of production costs, was "typically sold at prices higher than most other juice products", and the price of the juice could vary over time because of weather or disease affecting the supply of fruit and vegetables. Odwalla's sugar content could be even higher than Coca-Cola's. For example, Odwalla's "Mango Tango" had 3.67 grams of sugar per ounce—almost 1 full teaspoon of sugar in every ounce of juice. Coca-Cola contains 3.25 grams of sugar per ounce. This translates to 44 grams of sugar (nearly four tablespoons) in a 12-ounce "Mango Tango" versus 39 grams of sugar in a 12-ounce Coke. Throughout its history, Odwalla produced and subsequently withdrew various juice flavors due to their lower popularity, including the Odwalla Superfood Amazing Purple, Soy Vanilla, and Pomegranate Mango drinks.


Food bars

In September 1998, Odwalla began to sell
energy bars Energy bars are supplemental bars containing cereals, micronutrients, and flavor ingredients intended to supply quick food energy. Because most energy bars contain added protein, carbohydrates, dietary fiber, and other nutrients, they may be ...
made with fruit and grains, called food bars, as an alternative to its drinks in an attempt to raise revenue following the 1996 ''E. coli'' outbreak. The first three flavors released were Cranberry Citrus, Organic Carrot & Raisin, and Peach Crunch. Within eight weeks of their release, the Odwalla Bar was one of the top-selling energy bar brands in the market. The bars came in a variety of flavors, and weighed 2 ounces (56 grams) per bar. As of 2001, before Odwalla was acquired by Coca-Cola, food bars accounted for less than five percent of Odwalla's revenue.


See also

*
List of food companies This is a list of food companies, current and past businesses involved in food production or processing. Africa * All Joy Foods * Bakers * BOS Ice Tea * Cevital * Choppies * Clover * Colcom Foods * Distell Group Limited * Famous Brands * ...


References


External links


Odwalla
* {{Authority control Drink companies based in California American companies established in 1980 Food and drink companies established in 1980 1980 establishments in California Food recalls Companies based in San Mateo County, California Companies based in Tulare County, California 2020 disestablishments in California Coca-Cola brands Products introduced in 1980 1993 initial public offerings Products and services discontinued in 2020 2001 mergers and acquisitions Coca-Cola acquisitions Juice brands Half Moon Bay, California Food and drink companies disestablished in 2020