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The Honolulu Advertiser
Posted on: Thursday, August 9, 2007

Peter Pan brand hopes image can erase taint

By Josh Funk
Associated Press

OMAHA, Neb. — Peter Pan peanut butter will return to stores this month with a 100 percent satisfaction guarantee to try 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 yesterday's announcement. Instead, the Omaha-based company emphasized the brand's history and surveys showing consumer interest along with the redesigned jar 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 relaunch, 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 butters, 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 try to 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 try to ensure it will detect any future contamination.

ConAgra shares slipped 4 cents yesterday to close at $26.41.