AP Features, August 8th, 2007
Peter Pan peanut butter will return to stores this month with a 100 percent satisfaction guarantee to reassure consumers that ConAgra Foods has fixed the problems that allowed salmonella to contaminate the product.
ConAgra Foods didn't mention the nationwide recall in Wednesday's announcement. Instead, the Omaha-based company emphasized the brand's history and surveys showing consumer interest and touted the redesigned bottle with a prominent guarantee on the label.
David Palfenier, president of ConAgra's grocery division, said the level of consumer and retailer demand for Peter Pan makes him optimistic the company will be able to restore sales to pre-recall levels of about $150 million annually sooner than expected. The first shipments go out next week.
"We're going to be hitting them from all sides," Palfenier said.
As part of the product launch, Palfenier said, all the consumers who contacted ConAgra during the recall, including those who became ill after eating Peter Pan, will receive coupons for a free jar of the peanut butter. And $1-off coupons will be offered to other consumers.
"We are obviously deeply concerned for those consumers who were affected by Peter Pan and are taking, I'd say, extraordinary efforts to make that right," Palfenier said.
The company has to find ways to reassure customers that Peter Pan is safe without reminding them why the brand hasn't been available since February, said DePaul University marketing professor Joe Marconi, author of "Crisis Marketing: When Bad Things Happen to Good Companies."
Marketing Peter Pan to customers who became ill is a touchy area, Marconi said.
"The best strategy to take would be to focus on their plans for the future," he said.
ConAgra recalled all its peanut butter after government investigators linked the bacteria outbreak to ConAgra's Peter Pan and Great Value peanut butter, which were produced at a Georgia plant. The federal Centers for Disease Control and Prevention tied the peanut butter to the illnesses of more than 625 people in 47 states.
While ConAgra faces several lawsuits filed by people who say they became ill after eating Peter Pan, the company must now convince consumers the product is safe.
ConAgra renovated its Sylvester, Ga., plant to provide greater separation between raw peanuts and the finished product.
ConAgra also developed a new testing plan for the plant to ensure its peanut butter is safe and that the company would detect any future contamination.
Michael Doyle, director of the University of Georgia's Center for Food Safety, advised ConAgra on the changes at the Georgia plant, and he applauded the company's efforts.
"It's probably the best peanut butter processing plant in the world" in terms of safety, Doyle said.
ConAgra shares slipped 4 cents Wednesday to close at $26.41.
Salmonella sickens about 40,000 people a year in the U.S. and kills about 600. It can cause diarrhea, fever, dehydration, abdominal pain and vomiting.
Most cases of salmonella poisoning are caused by undercooked eggs and chicken. The only previously known salmonella outbreak in peanut butter occurred in Australia during the mid-1990s and was blamed on unsanitary plant conditions.
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On the Net:
Peter Pan peanut butter: http://www.peterpanpb.com
ConAgra Foods Inc.: http://www.conagrafoods.com
Food and Drug Administration: http://www.fda.gov
Centers for Disease Control and Prevention: http://www.cdc.gov
