Crisis Report for Kellogg's
Stage 1: Crisis Generation
Several negative events converging on Kellogg’s Eggo production resulted in the national Eggo shortage (see appendix 1). Two out of four major Eggo manufacturing facilities were non-operational and one of these facilities has suspended Eggo production indefinitely. The two offline facilities are located in Atlanta, GA, and Rossville, TN, Tennessee being the major contributor (Pepitone, 2009). Although, the facilities in Blue Anchor, New Jersey and San Jose, California are still operational Kellogg 's is unable to meet the consumer demand. Lack of preparation on Kelloggs part has created an organizational crisis (Perkins, 2010). The Atlanta, GA facility has faced two issues. First, during a routine inspection on Aug. 31st of 2009 by the Georgia Department of Agriculture (GDA) (see appendix 5), Listeria monocytogenes was found in a batch of Eggo’s Buttermilk Waffles. The GDA pointed to sanitation problems as causing the contamination, including such things as dirty utensils and equipment, and lax employee hygiene (Popovich, 2010). The plant closed on September 2nd to address these issues and temporally eased production. It remained shut down for the duration of September to clean and sanitize the facility. In addition, they recalled about 4,500 cases of Eggo Cinnamon Toast Waffles and Toaster Swirlz Cinnamon Roll Minis made at the Atlanta facility during this time (McCormick, 2009). However, no related illness was ever reported. In late September, they were ready to reopen the facility, but heavy rains hit Atlanta. This further delayed production into October which was in a news segment titled "Bacteria, Flood, Shut Down Atlanta Eggo Plant".
While the Atlanta Eggo Plant was closed from the flooding, the U.S. Food and Drug Administration (FDA) performed an inspection at the facility. The inspection was in response to the Georgia Department of Agriculture finding in August
Several negative events converging on Kellogg’s Eggo production resulted in the national Eggo shortage (see appendix 1). Two out of four major Eggo manufacturing facilities were non-operational and one of these facilities has suspended Eggo production indefinitely. The two offline facilities are located in Atlanta, GA, and Rossville, TN, Tennessee being the major contributor (Pepitone, 2009). Although, the facilities in Blue Anchor, New Jersey and San Jose, California are still operational Kellogg 's is unable to meet the consumer demand. Lack of preparation on Kelloggs part has created an organizational crisis (Perkins, 2010). The Atlanta, GA facility has faced two issues. First, during a routine inspection on Aug. 31st of 2009 by the Georgia Department of Agriculture (GDA) (see appendix 5), Listeria monocytogenes was found in a batch of Eggo’s Buttermilk Waffles. The GDA pointed to sanitation problems as causing the contamination, including such things as dirty utensils and equipment, and lax employee hygiene (Popovich, 2010). The plant closed on September 2nd to address these issues and temporally eased production. It remained shut down for the duration of September to clean and sanitize the facility. In addition, they recalled about 4,500 cases of Eggo Cinnamon Toast Waffles and Toaster Swirlz Cinnamon Roll Minis made at the Atlanta facility during this time (McCormick, 2009). However, no related illness was ever reported. In late September, they were ready to reopen the facility, but heavy rains hit Atlanta. This further delayed production into October which was in a news segment titled "Bacteria, Flood, Shut Down Atlanta Eggo Plant".
While the Atlanta Eggo Plant was closed from the flooding, the U.S. Food and Drug Administration (FDA) performed an inspection at the facility. The inspection was in response to the Georgia Department of Agriculture finding in August
Cited: Churchill, M. R. (2009 February 27). Benefits Of Employee Incentive Programs HRResource.com Dvorak, P. (2009 December 4). Shortage of Eggo Waffles Could Create a Sticky Situation Global Code of Ethics. (2010). Kellogg.com. Retrieved April 1, 2010 from http://files.shareholder.com/downloads/K/895178886x0x148401/0FBF97EA-585E-4ADA-B9D5-2C49AE56491D/2007_KelloggsCodeOfEthics.pdf Hartman, B. (2009 November 18). Eggo Waffle Shortage:Bacteria First Forced Plant Closure Howard, C. (Executive Producer). (2009 November 19). Bacteria, Flood, Shut Down Atlanta Eggo Plant Kellogg Co 10-K: Annual Report. (2010). Edgar Online, Inc, 1-106. Retrieved March 18, 2010, from http://files.shareholder.com/downloads/K/871101727x 0xS1193125-10-42654/55067/filing.pdf. McCormick, L. W. (2009 November 19) Listeria Found in Eggo Waffles Prior to Shortage Pepitone, J.(2009 November 18) Leggo Your Eggo: There 's a Waffle Shortage. CNN Money Perkins, B. (2010 February 25). Plant Upgrade Keeps Eggo Waffles in Short Supply. AOL News Popovich, N. (2010 February 17) Kellogg Slapped For Contamination At Eggo Waffle Factory Shots, NPR PR Newswire.(2010 January 26). New Year, New Food: Kellogg Introduces Two New Ways to Recharge Your Resolution With Special K:Special K Low-Fat Granola and Special K Fruit Crisps give women new tools for weight-loss management [Press Release] Stephey, M. J. (2009 November 23). The Brief History of Waffles. Time Magazine. FROM: MeganLunetta@kellogg.com DATE: March 14, 2010