products founded santa cruz california united states 1980 founder greg andrew steltenpohl gerry keith percy jeannine bonstelle bonnie bassett headquarters half moon bay california united states area served united states key people steven m. mccormick coo and general manager james r. steichen svp finance and cfo chris brandt director brand products drinks food bars revenue us 187.9 million 2007 number of employees 900 1 parent minute maid a division of the the coca cola company website odwalla.com odwalla inc. o dw l is an american food product company that sells fruit juice smoothies and food bars . it was founded in santa cruz california in 1980 and is headquartered in half moon bay california . the company experienced strong growth after its incorporation in 1985 expanding its distribution network from california to most of north america and went public in 1993 . a period of decline occurred as a result of a fatal outbreak of e.coli 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 odwalla adopted flash pasteurization and other sanitization procedures . odwalla recalled its juices and experienced a ninety percent 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 for us 181 million and became a wholly owned subsidiary . odwalla s range of products includes juices smoothies soy milk bottled water organic beverages and several types of energy bars known as food bars . contents 1 history 1.1 origin 1.2 incorporation 1996 1.3 from 1996 2 production 3 products 3.1 drinks 3.2 food bars 4 see also 5 references 6 external links history edit origin edit odwalla was founded in santa cruz california in 1980 by greg steltenpohl gerry percy and bonnie bassett . 2 3 odwalla s production facility is in dinuba california . 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 van to local restaurants 3 4 employing slogans such as soil to soul people to planet and nourishing the body whole . 5 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 jazz group of which mitchell was a member . 6 7 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 . 8 incorporation 1996 edit the headquarters of odwalla inc. in half moon bay california odwalla was incorporated in september 1985 after five years of growth 2 and expanded to sell products in san francisco in 1988 . hambrecht & quist inc. a venture capital firm in san francisco was one of odwalla s main investors at the time investing several million dollars in the company . 6 by 1992 the company employed 80 people at its company headquarters in davenport california and sold around 20 different flavors of juice for between 1.50 and 2.00 a pint . 6 9 odwalla went public in december 1993 nasdaq odwa ; 3 the company had 35 delivery trucks almost 200 employees and made about 13 million a year . 10 soon afterwards odwalla expanded into new markets when it bought two companies in the pacific northwest and colorado . 3 odwalla built a new production facility located in dinuba california in 1994 in order to better meet production demands . 11 the following year the company moved its headquarters to half moon bay california . 12 continual growth and outside investments during these years allowed the company to expand and grow odwalla s revenue tripled from 1994 to 1995 9 and in 1996 they made more than 59 million in sales their highest ever . 13 this constant growth made odwalla one of the largest fresh juice companies in america by 1996 14 when the company was selling its products to stores in seven states and parts of canada . 2 15 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 of unpasteurization . 6 14 from 1996 edit further information 1996 odwalla e. coli outbreak on october 7 1996 odwalla made a batch of apple juice 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 . 14 a bottle of odwalla future shake 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 . 3 16 another new product was the future shake a liquid lunch aimed at younger consumers . 17 because of these efforts odwalla was again profitable by the end of 1997 reporting a profit of 140 000 for the third quarter . 18 having recovered the company worked to expand geographically into markets like philadelphia and washington d.c. 19 and by the end of 1998 reported that revenue had surpassed pre crisis levels . 9 growth continued over subsequent years 20 21 in part through the 29 million acquisition of fresh samantha a large juice company based in saco maine in 2000 . 22 23 24 this allowed odwalla to expand into additional east coast 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 florida . however facing difficulties in obtaining building permits and allocating sufficient funds the project was first delayed and eventually cancelled . 23 25 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 . 24 26 odwalla was purchased by the coca cola company in 2001 for 15.25 a share a deal which totalled 181 million and was unanimously approved by the odwalla board of directors . 27 28 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 department . 29 the acquisition was one of several similar mergers which were aimed at expanding coca cola s product line to include non carbonated drinks . 30 31 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 . 32 odwalla also was able to expand into new markets because of coca cola s well established distribution network . 31 odwalla continued to grow following the acquisition . this growth resulted in part from new product releases which included a line of pomagrand pomegranate juice released at the 2006 sundance film festival 5 two flavors of energy drinks 33 and three flavors of soy smart drinks which contain soy protein omega 3 fatty acids and calcium . 34 35 coca cola promoted odwalla products in 2006 when the company aimed at removing carbonated soda products in schools . 36 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 . 37 production edit a refrigerated odwalla display case at a grocery store ; odwalla uses these cases to increase its products visibility . odwalla uses what it characterizes as fresh sourced produce fruits and vegetables that have recently been harvested to make many of its products 2 38 as well as organic oats for food bars and certain tropical fruits in a frozen pur e form purchased from an outside source and blended with fruit juice . 2 23 because odwalla uses fresh produce some juices are seasonal . 39 40 fruit availability and price is also affected by adverse weather disease and natural disasters . 23 throughout the year odwalla juice colors and flavors change slightly because different types of fruit are used . 13 38 after the e. coli outbreak odwalla improved the safety of several of its production processes . before the fruit enters the factory it is washed sorted and sanitized . once it has reached the plant the apples carrots and citrus fruits are separated and washed again . the fruit is pressed to get the juice which is then flash pasteurized and bottled . 38 41 a sample undergoes quality testing and if it passes the batch is shipped in refrigerated trucks to various distribution centers in the united states . 23 38 odwalla juice has a relatively short shelf life compared to other beverages and thus must be refrigerated . however after the introduction of flash pasteurization in 1996 and a new plastic bottle in 2001 the shelf life has been considerably extended . 2 14 23 generally odwalla products are sold in special odwalla brand displays at grocery and convenience stores instead of being intermixed with other products . 5 23 products edit drinks edit a box of banana nut bars and two chocolate chip protein bars odwalla inc. produces many flavors of fruit and vegetable drinks as well as dairy free soy milk marketed under the soy smart name 23 34 pomagrand pomegranate juice 5 serious energy caffeinated fruit juice 33 42 bottled spring water 2 and odwalla s superfood smoothie line of products see green smoothie which are viewed as the core products of the company and are made of various fruit pur es wheat grass and barley grass . 5 43 these products accounted for roughly 95 percent of odwalla s revenue in 2001 . 23 odwalla juice is sold in individual 12 fl oz formerly 450 millilitre or 15.4 us fl oz bottles made of plant based recyclable hdpe plastic 44 as well as larger 64 us fluid ounce 1.9 litre containers . 40 43 45 odwalla s juice because of production costs is typically sold at prices higher than most other juice products and the price of the juice can vary over time because of weather or disease affecting the supply of fruit and vegetables . 2 throughout its history odwalla has produced and subsequently withdrawn various juice flavors due to their lower popularity including the odwalla superfood amazing purple 46 soy vanilla 47 and pomegranate mango drinks . 12 food bars edit in september 1998 odwalla began to sell energy bars made with fruit and grains named food bars 48 as an alternative to its drinks in an attempt to raise revenue following the 1996 e. coli outbreak . 3 the first three flavors released were cranberry citrus organic carrot & raisin and peach crunch all three of which are now discontinued . 16 within eight weeks of their release the odwalla bar was one of the top selling energy bar brands in the market . 49 the bars come in a variety of flavors and weigh 2 ounces 56 grams per bar . as