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‘I Say It’s Spinach ...’

The Simultaneous Tarnishing of 30 Brands

October 2006 By Denny Hatch
8

In the News

3rd Bad Spinach Bag From Calif. Plant
Third bag of tainted spinach linked to Calif. plant, health officials say
SACRAMENTO, Calif.—A third bag of Dole baby spinach that tested positive for a deadly E. coli strain has been linked to a specific batch packaged at a Salinas Valley plant, state health officials said. A Pennsylvania state lab identified the strain Tuesday in a sample of spinach purchased on or around Sept. 8 in Indiana County. Samples from the individual who was believed to be sickened by eating the spinach still are being tested. At least 183 people nationwide have been sickened by eating spinach tainted by the same E. coli strain.
—Associated Press, Sept. 28, 2006
On Dec. 8, 1928, The New Yorker ran one of its most famous cartoons drawn by Carl Rose with text by E. B. White. It depicted a small child eating dinner. The caption:

Young mother: “It’s broccoli, dear.”
Young daughter: “I say it’s spinach, and I say the hell with it.”

Recently, I’ve been buying bagged spinach and either microwaving it in the bag or sauteing it with a ton of garlic.

Great stuff, until nearly 200 people in 26 states became seriously ill with E. coli from tainted bagged spinach supplied by Natural Selection Foods in California’s Salinas Valley. At least one person died and 29 others had kidney failure.

From a public health point of view, the story is E. coli.

In the world of marketing, this is all about brand protection.

Musings of a Naïve Consumer
I work at home, so I do the grocery shopping. Bagged spinach and salad greens make me feel good. For example, the bagged romaine hearts from Earthbound Farms were terrific—no outer leaves to discard, dated for freshness, keeps fresh in the bag. What’s more, these are for sale at the local Super Fresh (an A&P subsidiary) and Whole Foods six blocks away. Whole Foods is a class operation; any product with a Whole Foods imprimatur is fine by me.

I always preferred Earthbound to Dole. Ever since I was a kid I thought of Dole pineapples coming from Hawaii. If Dole produce comes from Hawaii, I reasoned, it takes a long time to get here, so Earthbound must be closer and fresher.

What’s more, “Earthbound” sounds crunchy, organic and natural with no chemicals. Do I pay more for Earthbound? I assume so. Everything at Whole Foods seems to cost more.

Once in a while I go to Trader Joe’s across town and pick up Trader Joe’s brand bagged spinach or salad greens.

I considered myself a fairly savvy consumer/shopper.

As Miss Piggy might say, “Silly moi!”

The Food and Drug Administration announced that the following 30 brands were recalled for possible E. coli contamination from the Natural Selection Foods plant in San Juan Bautista, Calif.:

Natural Selection Foods, Pride of San Juan, Earthbound Farm, Bellissima, Dole, Rave Spinach, Emeril, Sysco, O Organic, Fresh Point, River Ranch, Superior, Nature’s Basket, Pro-Mark, Compliments, Trader Joe’s, Ready Pac, Jansal Valley, Cheney Brothers, D’Arrigo Brothers, Green Harvest, Mann, Mills Family Farm, Premium Fresh, Snoboy, The Farmer’s Market, Tanimura & Antle, President’s Choice, Cross Valley, and Riverside Farms.

Takeaway Points to Consider:

* If I were running a business again, this spinach debacle would inspire me to do an assessment of every facet of my operation to determine which areas I controlled absolutely, had partial control over and had no direct control over. Where might a failure in the system occur, and what would the consequences be?

* I would have in place a public relations crisis management plan—and a business recovery plan—or any and all possible contingencies. Ad hoc disaster management would probably make things worse.

* I would Google my suppliers and major customers every six months to see if anything untoward is going on that could affect my business.

* If the flow of my business depended entirely on one outside supplier—a processing plant, a warehouse or a printer for example—I would certainly buy a D&B Comprehensive Report™ every six months and consider moving some of that work to a backup source to spread the risk.

* Whether your business is book publishing (as in James Frey’s bogus memoir for Random House), Dr. Phil’s diet program, Firestone, Vioxx, cigarettes or spinach, a legion of class action lawyers are waiting to pounce the minute you make a mistake—even if it’s not your fault.

* For example, if you or someone you know contracted E. coli from tainted spinach, the Seattle law firm of Marler Clark (www.ecoliblog.com) is waiting to hear from you. You should be able to collect from $25,000 to $15 million, depending on the severity of the illness.

* Even if it’s not your fault, if you own the company, it’s your fault.

Web Sites Related to Today's Edition:

FDA Statement on E. coli Outbreak
http://tinyurl.com/g2tmz

Western Growers Association
http://www.wga.com/public/index.php

Marler Clark, E. coli Class Action Attorneys
http://www.ecoliblog.com

Natural Selection Foods/Earthbound Farm
http://www.ebfarm.com/

Dole
http://www.dole.com

Trader Joe’s
http://www.traderjoes.com

Ready Pac
http://www.readypac.com

D&B Comprehensive Report™
http://tinyurl.com/j9te8
 
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COMMENTS

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Most Recent Comments:
andy garcia III - Posted on October 16, 2006
My friend from California emailed me this article. I am a local processor/shipper of fresh spinach from Colorado and Texas. Needless to say this situation will probably put me out of business even though our spinach fields are fine and have never had ecoli issues.I had to let 11 employee's go as a result of this!Another sad reality is that California will somehow come out smelling like a rose because there will be less local people like me doing fress processing!It amazes me that the Florida department of Ag. just sit's back and does nothing for Florida businesses even after direct emails to Com. Bronson. He has lost my vote! The FDA failed to respond to my concerns and requests about "all the other spinach" grown in the USA.
Andrew Garcia III
Ruskin Packaging Inc.
305-773-3358
Peter Blau - Posted on October 03, 2006
My take on this: avoid "organic" products like the plague!
Tanja Sattler - Posted on October 03, 2006
Unfortunately this is not the first time they have had an E-coli out break in this area. According to the Economist (9/23 issue), there have been 9 outbreaks of E.Coli in this valley, in fresh produce, since 1995. This can't possibly be a surprise to them.
John Friesen - Posted on October 03, 2006
I think what we have here is a failure of infrastructure: dilapidated physical infrastructure that results in using sewage contaminated groundwater to irrigate crops, and crumbling personal infrastructure that results in people going from toilet to kitchen or food handling without washing their hands. Both infrastructures could be repaired by spending a little public money. I wonder how much that highway to nowhere in Afghanistan cost? Oh, yeah, $700,000 per kilometer.
Chris Altwegg - Posted on October 03, 2006
Nice story, but I'm not sure that all the spinach is the same regardless of the bag brand. In my college days I worked summers at a BirdsEye frozen food plant in Oregon. Among the items produced was green beans. Periodically an inspector would take a dozen consumer-sized boxes of blanched but unfrozen beans off the line, and carefully examine every bit of beans. If she found too many beans with a rust stain or an extraneous bit of stem, we would "go out of grade" and the labeling line would take off the BirdsEye roll of labels and put on the store brand labels that had contracted for excess beans. The line foreman would crack the whip on the ladies inspecting on the line, and after a bit we would be back in grade and could put the BirdsEye label back on the line. I learned that while the beans were the same beans, the quality of inspection made the difference. (Of course, BirdsEye knew how many boxes of beans they could sell in a year, and when they reached that, it was store brands for the rest of the season.) I learned that summer that if you're fixing dinner for your family, store brand is probably good enough. If you're fixing dinner for the boss and his wife, you pay the extra for reassurance of a premium brand. And that premium brand company BETTER make sure they deliver premium quality and service.
Jack McCarthy - Posted on October 03, 2006
Great article! I think you might be amazed at some of the brands that put themselves at huge risk every single day in millions of individual situations simply because they don't want to spend PENNIES to insulate themselves from brand-busting events like the recent spinach mess, or they don't want to bother, or they're keeping their fingers crossed that they won't get caught.
Denny Hatch - Posted on October 03, 2006
To Richard Armstrong
Okay, the bag is probably not plastic but clear, plastic-like stuff that does not melt in the microwave. Whatever, the spinach is pretty good that way. Thanx for writing.
Richard Armstrong - Posted on October 03, 2006
Did you say you microwave the spinach IN the plastic bag, Denny? That must yield an interesting flavor!
Click here to view archived comments...
Archived Comments:
andy garcia III - Posted on October 16, 2006
My friend from California emailed me this article. I am a local processor/shipper of fresh spinach from Colorado and Texas. Needless to say this situation will probably put me out of business even though our spinach fields are fine and have never had ecoli issues.I had to let 11 employee's go as a result of this!Another sad reality is that California will somehow come out smelling like a rose because there will be less local people like me doing fress processing!It amazes me that the Florida department of Ag. just sit's back and does nothing for Florida businesses even after direct emails to Com. Bronson. He has lost my vote! The FDA failed to respond to my concerns and requests about "all the other spinach" grown in the USA.
Andrew Garcia III
Ruskin Packaging Inc.
305-773-3358
Peter Blau - Posted on October 03, 2006
My take on this: avoid "organic" products like the plague!
Tanja Sattler - Posted on October 03, 2006
Unfortunately this is not the first time they have had an E-coli out break in this area. According to the Economist (9/23 issue), there have been 9 outbreaks of E.Coli in this valley, in fresh produce, since 1995. This can't possibly be a surprise to them.
John Friesen - Posted on October 03, 2006
I think what we have here is a failure of infrastructure: dilapidated physical infrastructure that results in using sewage contaminated groundwater to irrigate crops, and crumbling personal infrastructure that results in people going from toilet to kitchen or food handling without washing their hands. Both infrastructures could be repaired by spending a little public money. I wonder how much that highway to nowhere in Afghanistan cost? Oh, yeah, $700,000 per kilometer.
Chris Altwegg - Posted on October 03, 2006
Nice story, but I'm not sure that all the spinach is the same regardless of the bag brand. In my college days I worked summers at a BirdsEye frozen food plant in Oregon. Among the items produced was green beans. Periodically an inspector would take a dozen consumer-sized boxes of blanched but unfrozen beans off the line, and carefully examine every bit of beans. If she found too many beans with a rust stain or an extraneous bit of stem, we would "go out of grade" and the labeling line would take off the BirdsEye roll of labels and put on the store brand labels that had contracted for excess beans. The line foreman would crack the whip on the ladies inspecting on the line, and after a bit we would be back in grade and could put the BirdsEye label back on the line. I learned that while the beans were the same beans, the quality of inspection made the difference. (Of course, BirdsEye knew how many boxes of beans they could sell in a year, and when they reached that, it was store brands for the rest of the season.) I learned that summer that if you're fixing dinner for your family, store brand is probably good enough. If you're fixing dinner for the boss and his wife, you pay the extra for reassurance of a premium brand. And that premium brand company BETTER make sure they deliver premium quality and service.
Jack McCarthy - Posted on October 03, 2006
Great article! I think you might be amazed at some of the brands that put themselves at huge risk every single day in millions of individual situations simply because they don't want to spend PENNIES to insulate themselves from brand-busting events like the recent spinach mess, or they don't want to bother, or they're keeping their fingers crossed that they won't get caught.
Denny Hatch - Posted on October 03, 2006
To Richard Armstrong
Okay, the bag is probably not plastic but clear, plastic-like stuff that does not melt in the microwave. Whatever, the spinach is pretty good that way. Thanx for writing.
Richard Armstrong - Posted on October 03, 2006
Did you say you microwave the spinach IN the plastic bag, Denny? That must yield an interesting flavor!