E. Coli Outbreak Creams Spinach Industry
Topic Marketing Channels, Distribution, and Supply Chain Management
Key Words Marketing intermediary, wholesaler, retailer, channel, upstream management
InfoTrac Reference A151827129
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News Story 

In September 2006, the Centers for Disease Control and Prevention issued several alerts concerning an outbreak of E. coli, a potentially lethal pathogen normally associated with beef. Investigators initially traced the contamination to raw spinach sold in bags, but later the Food and Drug Administration (FDA) identified the particular source as Natural Selection Foods, the largest U.S. grower and shipper of organic produce.

In response to the deadly scare, the California-based organics supplier recalled its fresh spinach products—but not before many consumers had fallen ill. Within weeks, spinach-related food poisoning had sickened more than 150 people in over 25 states and left at least one dead. Of the total cases, more than half required hospitalization to recover from serious abdominal cramping and bleeding.

The outbreak's impact on the $200 million-a-year spinach industry was immediate. Growers in the Salinas Valley area of California, upon receiving news of their link to E. coli, plowed under their crops. Consumers spooked by poisoning tallies shunned all varieties of spinach and stocked up on other greens, despite public announcements that some spinach was safe to eat.

The worst fallout from the E. coli scare appeared to be over within a month. However, industry watchers reported that organic growers could expect to encounter long-term difficulties, especially in regaining the public's confidence.

Questions
1.

What members of the supply chain were affected by the spinach contamination linked to organic grower Natural Selection Foods?

2.

Do you think the E. coli outbreak could have a long-term impact on all organic produce? Why or why not?

Source "Sickening spinach; Food safety," The Economist (US), Sept 23, 2006 v380 i8496 p33US
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