The Rocky Ford Cantaloupe Listeria Outbreak

Individual Paper for W505 Crisis Management

12/1/2011 Kelley School of Business Jos Pablo (JP) Vega

This paper examines the 2011 listeria outbreak that originated from cantaloupes grown in the Rocky Ford region of Colorado, USA. It focuses on the characterization of crisis communication efforts and the application of crisis response strategies. It starts with an overview of the crisis and then presents the relevant crises typologies and crisis threat assessments for three of the companies involved in the outbreak: Frontera Produce, Jensen Farms, and Wal-Mart. The research then explores the communications from Frontera and Jensen, including multiple quotes, press releases, social media interactions, and interviews with company executives. The paper ends with an analysis of a recent interview with the Frontera CEO from the Situational Crisis Communication Theory model, comparing its recommended crisis response strategies to the ones observed in the interview.

I have neither given nor received unauthorized aid on this deliverable.

The Rocky Ford Cantaloupe Listeria Outbreak

Contents
Crisis background ............................................................................................................................................................... 2 Crisis typology ..................................................................................................................................................................... 2 Reputational threat assessment .................................................................................................................................... 3 Analyzing the external crisis response ............................................................................................................................. 4 Jensen Farms external response .................................................................................................................................. 4 Frontera Produces external response ......................................................................................................................... 5 Interview analysis ................................................................................................................................................................ 5 Recommended crisis response strategies .................................................................................................................... 5 Utilized crisis response strategies ................................................................................................................................. 6 Appendix .............................................................................................................................................................................. 7 About Listeriosis............................................................................................................................................................. 7 Summary of external communications ....................................................................................................................... 7 Timeline of Events ......................................................................................................................................................... 9 Bibliography ....................................................................................................................................................................... 10

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Crisis background
In early September, as part of an investigation into a listeriosis outbreak, Colorado state health authorities requested shipment records from multiple cantaloupe growers (1). Amongst these growers was Jensen Farms, a farm located in Holly, Colorado which was eventually pinpointed on September 14 as the source of the outbreak in an FDA assessment. The listeria-tainted cantaloupes were shipped between July 29 and September 13. The outbreak turned into the deadliest foodborne illness outbreak in the United States since 1924 (2), with a 30-person current death toll that is no longer expected to increase (3). The marketer of these cantaloupes, Texas-based Frontera Produce, distributed the cantaloupes in 25 states (4). Frontera branded the Jensen cantaloupes as Rocky Ford, copying the name of a city famous for its cantaloupes located about 80 miles west of Holly. Its farmers are experiencing the negative impact of the incident and are extremely concerned about the long-term consequences of the crisis for their farms (5). As of November 30, 8 lawsuits have been filed around this crisis. The defendants include Jensen, Frontera, a PrimusLab subsidiary (Jensen Farms auditor), and Wal-Mart.

Crisis typology
Following Coombs master list of crisis typologies (6), the following is a crisis classification for each of the partially-responsible companies: For Jensen Farms, the crisis type is organizational misdeed. The FDA assessment found that Jensen used dirty equipment to wash and dry cantaloupes, among other unsanitary factors (7). Given these results, it can be assumed that management sacrificed food safety in favor of profits. For Frontera Produce, the crisis type is challenge. Affected consumers believe that Frontera operated in an inappropriate manner by using lax standards to evaluate its suppliers. Although Frontera was internally complying with safety and traceability standards, it merely required Good Manufacturing

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Practices audits from its suppliers, instead of the stricter Global Food Safety Initiative-benchmarked (GFSI) audits (8). For Wal-Mart, the crisis type is challenge. Just as Frontera could have required higher quality standards from its sourcing farms, so could have Wal-Mart from its secondary suppliers. Nevertheless, this additional step in the supply chain provides considerable incremental protection to Wal-Mart from being considered as responsible for the crisis.

Reputational threat assessment

To better assess the reputational threat for all three companies, it is important to note that prior to the crisis, both Frontera (1) and Wal-Mart (9) had begun programs to require their suppliers (primary and secondary, respectively) to comply with the stricter GSFI audits instead of the traditional GMP audits to which Jensen was subject when the outbreak occurred. Based on the previously determined crisis types, the use of the Situational Crisis Communication Theory (SCCT) crisis responsibility attribution component yields the following result: Organization Jensen Farms Frontera Produce Wal-Mart Crisis type Organizational misdeed Challenges Challenges Cluster Preventable Accidental Accidental Attribution of crisis responsibility Strong Low Low

The next step is then to modify the initial assessment based upon crisis history and prior reputation of the organizations (10). No previous crises were found for Jensen Farms. Frontera had voluntarily recalled one lot of cilantro in early 2009 due to concerns about a Salmonella infection. No deaths or illnesses were registered in this outbreak (11). Advanced traceability systems allowed Frontera to limit the scope of the recall to just 12% of the total cilantro cases in stores (11), and the event became a case study from The Produce Traceability Initiative (12). As for Wal-Mart, although it has had to act on multiple product recalls before, its crisis reputation remains fairly favorable due to the effectiveness that its product recall mechanisms have achieved over time and its

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relative lack of responsibility in the crises. These mechanisms include a website permanently dedicated to provide information to customers about current recalls.

External crisis response analysis

In this section, the communication efforts from Jensen Farms and Frontera Produce towards external stakeholders will be examined. The evaluation of the responses was made according to Coombs recommendations for external crisis communication (13). Thus, an ideal response form is characterized three attributes: high speed, consistency, and openness. The ideal response content is sequentially divided in three categories: instructing information, adjusting information, and reputation management.

Jensen Farms external response

The response form from Jensen Farms was slow, consistent, and reticent. Jensen Farms should have been the first organization to communicate the crisis. However, the first official communication with the general public (apart from the issuing the recall) was an interview to Amy Philpott (Jensen spokeswoman) by AP on Sept. 15 (14), three days after the Center for Disease Control posted the first web announcement linking Rocky Ford cantaloupes to the listeria outbreak (15). There were no contradictions amongst the four communications found in this research. The content of Jensen Farms response was clearly contrary to best crisis management practices. Although at the time they were missing key facts that would be uncovered later by the FDA investigation, Jensen Farms missed the opportunity to tell the story from its perspective and simply relied on the press to spin the story as they pleased. When the Jensen family (owners of the farm) finally published their first self-initiated communication a Facebook note on Sept. 16 , instead of providing enough context or referring users to other sources of information, they decided to say thanks to those who continued supporting the farm (16). A follow-up Facebook wall post on Oct. 11 highlights the work of a hired food safety consultant to show [their] supporters that [Jensen Farms] remains focused. The note goes on expressing gratitude towards their

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continuing supporters (again), and finally, closing with an our hearts go out to anyone with loss to this outbreak (17). Their last Facebook wall post was published on Oct. 20, the day after the FDA released its assessment. The company promises to carefully review the report, () not resume operations until [it can] insure the safety of [its] products [and] continue to cooperate with the FDA. The note finishes by extending deepest concerns to () the public who have been affected by this outbreak.

Frontera Produces external response

The response form from Frontera Produce was fast, consistent, and open. Despite having less pressure than Jensen to communicate to the general public about the outbreak, on Sept. 16 Frontera published a press release 2 days after the cantaloupe recall began (18). The next (and most recent) communication from Frontera came from Will Steele, CEO and president, through an extended interview granted to a reporter from The Packer on Nov. 21 (1). There are no contradictory statements between both documents, and both of them leave the impression that the company is not holding back on any facts. As for the content of the Frontera response, so far the company has managed to follow the three sequential categories (instructing information, adjusting information, and reputation management). Over 75% of the press release revolves around consumers, explaining them how to protect themselves from the listeria outbreak, and what is being done by the company and other entities to ensure their safety.

Interview analysis
This section refers to the Nov. 21 interview (1) with Will Steele, CEO of Frontera Produce.

Recommended crisis response strategies

The a priori use of Situational Crisis Communication Theory (SCCT) would have yielded the following recommendations for Wills crisis response selection:

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1. Use diminishment strategies, since this crisis fits in the accidental cluster and Frontera has no crisis history or unfavorable prior reputation. 2. Do not use denial strategies, since this challenge crisis is partially warranted. 3. Use corrective action (adjusting information) because other stakeholders (general, unaffected public) are likely to support the challenge. 4. If necessary, use rebuilding strategies as a complement to diminishment strategies. 5. If necessary, use bolstering strategies as a supplement to other strategies in an attempt to build a positive connection between Frontera and its stakeholders.

Utilized crisis response strategies

After analyzing Wills crisis response strategies, it can be concluded that his interview went extremely well if the benchmark is the degree to which he followed what SCCT recommends. Excerpt (Q1) Our role was that of a marketing agent. () We did not purchase or take possession of the [Jensen Farms; JF] cantaloupe. () As independent growers, the Jensens also sold directly to some customers, mostly locally. (Q4) We are examining, among other things, the role of audits. () They are obviously not failsafe. () So we are looking at possible changes that might further enhance food safety. (Q6) In cases where we act only as the marketing agent, as was the case with Jensen Farms, () we rely upon third-party audits to verify that farms () comply with acceptable food safety practices. (Q10) This is not about Rocky Ford cantaloupes. () it is about the unusual presence of listeria in one packing facility. (Q11) Our traceability system is one of the most sophisticated in the industry. () We are one of the first companies to introduce item-level traceability. We will continue to aggressively pursue food safety and traceability improvements. Comments Follows Recommendation #1 Will employs excusing, a diminishment strategy, in an attempt to minimize Fronteras responsibility for the crisis. He is shifting the blame to Jensen. Follows Recommendations #3 Here Will employs corrective action by stating that they are reviewing their current procedures to improve food safety and make sure that the crisis does not happen again. Follows Recommendation #1 Again, Will uses excusing, a diminishment strategy. This time he hints that the 3rd-party audits in which his company relied are questionable. Follows Recommendation #1 Now Will uses justification, a different diminishment strategy, by trying to minimize the damage that the incident can cause to the Rocky Ford brand in the long term. Follows Recommendation #5 Will uses reminding, a bolstering strategy, to show that Frontera had made a bright decision in the past to invest in traceability equipment with capabilities beyond the norm.

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Appendices
About Listeriosis
Listeriosis is a bacterial infection caused by Listeria monocytogenese. It is a relatively rare illness and occurs mainly in pregnant women, elderly people, and patients who are immunocompromised. Symptoms of listeriosis can take up to two months to develop in someone who has eaten contaminated food, and they include fever, muscle aches, vomiting, diarrhea, and meningitis (if it spreads to the nervous system). An infection in a pregnant woman can also lead to early delivery, infection of the newborn, and death of the baby (19).

Summary of external communications

Date
Sept. 15

Company
Jensen Farms

Source
Bloomberg Businessweek

Content/excerpts
[One of the farms Rocky Ford cantaloupes tested positive for the bacteria, but more tests are needed to determine if its the same strain linked to the outbreak. I do not know the state or the store, or the agency that found it.] The recall of the entire harvest was voluntary and a precaution. - Amy Philpott, spokeswoman [On Sept. 12 Wal-Mart removed cantaloupes and began working with suppliers to find melons that come from safe areas.] Regarding the Palmer lawsuit against Wal-Mart and Jensen: [This is the first time the company has heard that somebody might have been sickened by cantaloupe bought at Wal-Mart.] We take these concerns very seriously and we wish Mr. Palmer well. -Greg Rossiter, spokesman Statement regarding Jensen Farms September 14 cantaloupe recall: We are greatly saddened that people may have become ill from consuming fresh cantaloupes. Some of the cantaloupes recalled by Jensen Farms on September 14 have a green and white sticker with the Frontera Produce -Colorado-Rocky Ford name on it. We have provided FDA and state officials with our traceback information, and we are working with FDA and state health officials to determine where along the supply chain the Listeria contamination may have occurred. Consumers who think they may have product subject to this recall in their possession should not consume it, they should destroy it. Consumers can identify the whole cantaloupes by (). If the whole cantaloupe is unlabeled, please contact the retail store from which it was purchased to see if the product is affected by this recall. Consumers who feel ill and believe they may have consumed the recalled product should consult a medical professional. The whole cantaloupes in question were shipped between July 29th, 2011 and September 10th 2011, and distributed to the following states: (). Frontera Produce will continue to cooperate fully with state and federal health officials to facilitate this recall and protect public health.

Sept. 15

Wal-Mart

Bloomberg Businessweek

Sept. 16

Frontera Produce

Company website

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Date
Sept. 16

Company
Jensen Farms

Source
Facebook release

Content/excerpts
Many Thanks to those with continued support of Jensen Farms We want to reach out and thank everyone for supporting us through this terrible time in the history of our beloved farm. Your messages and wall posts are helping us stay motivated, and optimistic about our future. Thank you. At the moment we are focused on educating ourselves on every facet of this outbreak. Listeria and its presence in the Food Industry is not uncommon, but is uncommon in Cantaloupe - and we are determined to get to the bottom of how and why (and in what concentration) it could have appeared on our melons in the store. We regret that we cannot say more at this time, but please be assured that our conversations with the nations leading listeria researchers and food safety experts, as well as health professionals - will lead our efforts in a direction that will ensure safe melons from Jensen Farms in the future. As soon as we hear more from the FDA, we will let you all know - as for now, we hope and pray that the test results come back without link to any of those who are suffering. - The Jensen Family With test results pending, and the FDA's investigation into this outbreak ongoing, our counsel has advised us to refrain from answering any questions or becoming involved in any discussions at this time. We do, however, feel that it is important to show our supporters that we remain focused. As our research continues, we thought to share the following video (Fox 31 Denver) highlighting the work of Dr. Mansour, with whom we have been consulting over the past few weeks. His experience yields insight that we have found to be very helpful in deepening our understanding of the science behind food borne illness - and listeria specifically. His lab has researched numerous US outbreaks, and is respected throughout the industry for its comprehensive and accurate testing methods. We eagerly await results from both Mansour and the FDA, and hope to post once they become available. Again a huge thanks to all those in continued support of our Family Farm. Very Truly, our hearts go out to anyone with loss to this outbreak. - The Jensen Family Statement in response to the FDA Report released earlier today Jensen Farms has just been provided with a copy of the report issued today by the FDA. We will give it our careful review. We are also awaiting receipt of additional information from the agency. Our operations will not resume until we are completely satisfied that we have done everything within our power to insure the safety of our products. We continue to cooperate fully with the FDA and other government agencies and extend our deepest concerns to any and all members of the public who have been affected by this outbreak. When asked about the Palmer lawsuit: [The company could not comment on pending litigation, but] any lawsuit presents a financial burden in that resources are diverted away from jobs and growth. When asked about whether Frontera will file for bankruptcy if the lawsuit finds it guilty: Frontera looks forward to serving its customers for many years to come. Jim Mulhern, spokesman When asked about the Palmer lawsuit: We wish Mr. Palmer well, and we take claims such as his very seriously. [Wal-Mart removed cantaloupes before Jensen announced a recall.] [Wal-Mart is in the process of requiring its secondary suppliers to achieve prevention-based certification on one of the Global Food Safety Initiative-benchmarked standards.] -Diana Gee, senior manager for media relations Main article: Interview with Frontera president and CEO Will Steele.

Oct. 11

Jensen Farms

Facebook release

Oct. 20

Jensen Farms

Company website

Nov. 11

Frontera Produce

The Packer

Nov. 11

Wal-Mart

The Packer

Nov. 21

Frontera Producer

The Packer

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Timeline of Events

Source: (20)

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10

Bibliography
1. Johnson, Greg. Frontera CEO discusses company's role in listeria outbreak. The Packer - News. [Online] November 28, 2011. [Cited: November 30, 2011.] http://www.thepacker.com/fruit-vegetablenews/134589383.html. 2. Weise, Elizabeth. Cantaloupe listeria outbreak most deadly since 1924. USA Today. [Online] November 3, 2011. [Cited: November 30, 2011.] http://yourlife.usatoday.com/fitness-food/safety/story/2011-1103/Cantaloupe-listeria-outbreak-most-deadly-since-1924/51064012/1. 3. Goetz, Gretchen. Cantaloupe Listeria Outbreak Tapering Off. Food Safety News. [Online] November 25, 2011. [Cited: November 30, 2011.] http://www.foodsafetynews.com/2011/11/cantaloupe-listeria-outbreaktapering-off/. 4. Weise, Elizabeth. Listeria threat lingers despite recall. USA Today. [Online] September 25, 2011. [Cited: November 30, 2011.] http://yourlife.usatoday.com/fitness-food/safety/story/2011-09-13/CDC-DeadlyListeria-outbreak-linked-to-cantaloupe/50389936/1. 5. Cotter, Barbara. Rocky Ford takes brunt of listeria scare: 'It wasn't our product'. The Gazzete. [Online] September 17, 2011. [Cited: November 30, 2011.] http://www.gazette.com/articles/eric-125124-oterofallout.html#ixzz1YN2o2tYn. 6. Coombs, W. Timothy. Ongoing Crisis Communication, 3rd ed. s.l. : SAGE Publications, p. 73. 7. Weise, Elizabeth. FDA cites dirty equipment in deadly cantaloupe outbreak. USA Today. [Online] October 19, 2011. [Cited: November 30, 2011.] http://yourlife.usatoday.com/fitnessfood/safety/story/2011-10-19/FDA-cites-dirty-equipment-in-deadly-cantaloupe-outbreak/50829156/1. 8. Prevor, Jim. CANTALOUPE CRISIS ANALYSIS: While Blame The Auditor Frenzy Rages, It Pays To Look At Best Practices Vs Standard Practices. Perishable Pundit. [Online] October 23, 2011. [Cited: November 30, 2011.] http://www.perishablepundit.com/index.php?date=10/23/2011#2. 9. Karst, Tom. News - Outbreak lawsuits target Wal-Mart, PrimusLabs. The Packer. [Online] November 11, 2011. [Cited: November 30, 2011.] http://www.thepacker.com/fruit-vegetable-news/Wal-Mart-FronteraPrimusLabs-targeted-in-cantaloupe-lawsuits-133684463.html. 10. Coombs, W. Timothy. Ongoing Crisis Communication, 3rd ed. s.l. : SAGE Publications. pp. 154-163. 978-14129-8310-5. 11. Ohlemeier, Douglas. Frontera Produce recalls cilantro. The Packer. [Online] July 7, 2009. [Cited: November 30, 2011.] http://www.thepacker.com/fruit-vegetable-news/cropsmarkets/frontera_produce_recalls_cilantro_122055524.html. 12. GS1 US. Frontera Produce Traceability from Field to Store. ProduceTraceability.org. [Online] October 1, 2010. [Cited: November 30, 2011.] http://www.producetraceability.org/documents/Frontera%20Produce%20Traceability%20Case%20Study.pd f. 13. Coombs, W. Timothy. Ongoing Crisis Communication, 3rd ed. s.l. : SAGE Publications. pp. 139-168. 978-14129-8310-5. 14. Paulson, Steven K. Colorado farm says Listeria found in cantaloupe. Bloomberg Businessweek. [Online] September 15, 2011. [Cited: November 30, 2011.] http://www.businessweek.com/ap/financialnews/D9PPBB8G0.htm.

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15. Timeline of Events: Multistate Outbreak of Listeriosis Linked to Whole Cantaloupes from Jensen Farms in Colorado-United States, 2011. U.S. Center for Disease Control. [Online] October 24, 2011. [Cited: November 30, 2011.] http://www.cdc.gov/listeria/pdf/listeriosis-timeline102711.pdf. 16. Family, The Jensen. Many Thanks to those with continued support of Jensen Farms. Facebook: Jensen Farms - Rocky Ford Cantaloupe. [Online] September 16, 2011. [Cited: November 30, 2011.] http://www.facebook.com/notes/jensen-farms-rocky-ford-cantaloupe/many-thanks-to-those-withcontinued-support-of-jensen-farms/282082811804879. 17. . Wall: Jensen Farms - Rocky Ford Cantaloupe. Facebook. [Online] October 10, 2011. [Cited: November 31, 2011.] http://www.facebook.com/pages/Jensen-Farms-Rocky-FordCantaloupe/159818224031339?sk=wall. 18. Steele, Will. Statement Regarding Jensen Farms' September 14 Cantaloupe Recall. Frontera Produce. [Online] September 16, 2011. [Cited: November 30, 2011.] http://www.fronteraproduce.com/docs/RF_CantaloupeRecall.pdf. 19. Listeriosis. Wikipedia. [Online] November 1, 2011. [Cited: November 30, 2011.] http://en.wikipedia.org/wiki/Listeriosis. 20. Timeline of Events: Multistate Outbreak of Listeriosis Linked to Whole Cantaloupes from Jensen Farms, Colorado. Centers for Disease Control and Prevention. [Online] October 28, 2011. [Cited: November 30, 2011.] http://www.cdc.gov/listeria/outbreaks/cantaloupes-jensen-farms/110211/timeline.html. 21. Falkenstein, Drew. Marler on additional cantaloupe Listeria lawsuits: 3rd party auditors to be added. Food Poison Journal. [Online] November 11, 2011. [Cited: November 30, 2011.] http://www.foodpoisonjournal.com/foodborne-illness-outbreaks/marler-on-additional-cantaloupe-listerialawsuits-3rd-party-auditors-to-be-added/. 22. FDA warns consumers not to eat Rocky Ford Cantaloupes shipped by Jensen Farms. U.S. Food and Drug Administration. [Online] September 14, 2011. [Cited: November 30, 2011.] http://www.fda.gov/NewsEvents/Newsroom/PressAnnouncements/ucm271899.htm.