Blue Bell's listeria outbreak — a 108-year-old brand nearly died from poor sanitation

Blue Bell Creameries was founded in 1907 in Brenham, Texas, and grew into one of America's most beloved regional ice cream brands, with a cult following across 23 states. Its butter pecan and homemade vanilla were grocery-store staples, and the company prided itself on quality. For 108 years, Blue Bell had never issued a product recall.

In 2015, a listeria outbreak traced to Blue Bell's production plants sickened at least 8 people and killed 3. The FDA found that Blue Bell had repeatedly found listeria in its Broken Arrow, Oklahoma plant for two years before the outbreak but failed to take corrective action. One production machine at the Brenham, Texas facility was so contaminated it was permanently taken out of service. On April 20, 2015, Blue Bell recalled all its products — over 8 million gallons of ice cream — the first recall in its history.

The financial impact was catastrophic. Revenue plummeted and the company faced a capital crisis. Investor Sid Bass provided a $125 million rescue loan. Blue Bell laid off 1,450 employees (37% of its workforce) and furloughed 1,400 more. Production resumed in phases starting August 2015, but the company pleaded guilty in 2020 to distributing contaminated products and paid a $19.35 million fine. Former CEO Paul Kruse was indicted on fraud charges and eventually pleaded guilty to a misdemeanor.