Trying to Support Earth-Friendly Brands

It’s trickier to support The Little Guy than you thought…

From Organic Consumers Association:

Burt’s Bees, Tom’s of Maine, Naked Juice: Your Favorite Brands? Take Another Look

Confident that you are buying good, socially conscious brands? Find out the real story behind all that marketing money and store visibility.
By Andrea Whitfill

Straight to the Source

My first introduction to natural, organic and eco-friendly products stems back to the early ’90s, when I stumbled upon Burt’s Bees lip balm at an independently owned health food store in the heart of Westport, Kansas City, Mo.

Before the eyesore invasion of ‘98, when Starbucks frothed its way into the neighborhood, leading to its ultimate demise, Westport was the kind of  ‘hood I still yearn for. It was saturated with historically preserved, hip and funky, mom-and-pop-type establishments, delivering their goods people to people.

I was surprised more recently when I saw Burt’s Bees products everywhere — in grocery stores, drug stores, corner bodegas and big-box stores like Target and Wal-Mart. I thought to myself, fantastic; the marketplace is working, and good for Burt. He has made his mark, and the demand for his products is on the rise.

Needless to say, I was shocked when I recently found out that Burt’s Bees is now owned by Clorox, a massive corporate company that has historically cared very little about the environment, but whose main industry is directly associated with harmful chemicals, some of which require warning labels for legal sale.

Clorox; yes, that’s right — the bleach company with an estimated revenue of $ 4.8 billion that employs nearly 7,600 workers (now bees) and sells products like Liquid-Plumr, Pine-Sol and Armor All, a far cry from the origins of Burt.

I now understood. The reason Burt’s Bees products were everywhere was precisely because they now had a powerful corporation in the driver’s seat, with big marketing budgets and existing distribution systems.

The story of Burt is a charming one gone bad. Burt Shavitz, a beekeeper in Dexter, Maine, lived an extremely humble life selling honey in pickle jars from the back of his pickup truck and resided in the wilderness inside a turkey coop without running water or electricity.

In the summer of 1984, Shavitz was driving down the road and spotted a hitchhiker who needed a lift to the post office. He pulled over and picked up Roxanne Quimby, a 34-year-old woman who eventually became Shavitz’s lover and business partner. Quimby started helping him tend to the beehives, and that eventually led to the all natural-inspired health care products made with Shavitz’s honey and the birth of Burt’s Bees products.

Burt’s story and very powerful narrative gave Burt’s Bees products their legitimacy in my book. Creative entrepreneurs and knowledgeable consumers together working their magic; not the results of a corporate behemoth out to dominate the marketplace.

However, Quimby and Shavitz’s relationship became ’sticky’ in the late ’90s for reasons unclear, yet probably having little to do with honey. Their romantic break up carried over to the split of their business partnership as well. In 1999, Quimby bought out Shavitz’s shares of the company for a small six-figure sum. Quimby then continued, becoming phenomenally successfully and growing sales to $43.5 million by 2002.

In 2003, a private equity firm, AEA investors, purchased 80 percent of Burt’s Bees from Quimby, with her retaining a 20 percent share and a seat on the board. In 2006, John Replogle, the former general manager of Unilever’s skin-care division became CEO and president of Burt’s Bees. The company was sold to Clorox in late October 2007 for $925 million.

Quimby was paid more than $300 million for her stake in Burt’s Bees. At the time of that deal, Shavitz reportedly demanded more money, and Quimby agreed to pay him $4 million. Quimby now refurbishes fancy, swank homes in Florida, travels the world and buys massive chunks of land in her free time. Our bearded man Shavitz, on the other hand, now 73 and unchanged, continues to reside amidst nature in his now-expanded turkey coop, which still remains absent of electricity or running water.

The Burt’s Bees story is disconcerting. I vaguely remembered long ago that one of my favorite ice cream products, Ben & Jerry’s, sold out. Unilever (which also owns Breyers), the giant conglomerate with an estimated market cap of $50 billion and close to 174,000 employees, bought Ben & Jerry’s in 2000 for $326 million.

I began to wonder about the other products I liked, trusted and respected for their independence and their social responsibility. How many were really owned by big corporations, who were going out of their way to hide the link between the big corporate company with the small, socially responsible brand? It didn’t take long for my list of disappointments to grow and grow.

Upon first meeting someone, I can usually tell a quite a lot about them by the contents of their bathroom. The brand I see most often behind medicine cabinets of people I consider to be environmentally conscious is Tom’s of Maine. What Tom’s says to me about the person is that they are willing to spend a little bit of extra cash in order to take proactive steps to help green the Earth.

Well, no more. My bathroom assessments will never be the same. Tom’s of Maine is owned by Colgate-Palmolive, a massive, tanklike company with an estimated 36,000 employees and revenue of approximately $11.4 billion. Its big products include: Ajax, Anbesol and Speedstick.

I am only left to wonder, is Trader Joe’s, popularly known to showcase Tom’s of Maine in its hygiene department, just as much in the dark about all of this as I have been? Or is Joe’s simply another conduit for big corporate products?

As my curiosity grew, I took a little field trip to the grocery store with one of my friends to be a “brand anthropologist.” “Let’s get to the bottom of this,” I said, aiming to check out all of the brands that I and countless other good consumers were buying in our efforts to support grassroots business and not corporate behemoths. Little did I know how deep the hole was going to be, and in some cases, how hard to find out who owns what.

Thinking Dairy

In the dairy section sit many flavors of Stoneyfield Farm Yogurt. I knew its socially conscious CEO, Gary Hirshberg, had created major organic brand recognition to become the No. 1 seller of organic yogurt in the United States, but since then Danone, the French conglomerate (which also owns Brown Cow), acquired a majority holding in Stoneyfield. This is the same Danone that had to recall large quantities of its yogurt in 2007 after it was found to contain unsafe levels of dioxins. (In an interesting twist, the still-active Hirshberg sits on the board of Dannon U.S.A. Unlike most of the early entrepreneurs, who took the dough and left the scene, Hirshberg is still involved. )

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