With a busy week behind you and the weekend within reach, there’s no shame in taking things a bit easy on Friday afternoon. With this in mind, every Friday TriplePundit will give you a fun, easy read on a topic you care about. So, take a break from those endless email threads and spend five minutes catching up on the latest trends in sustainability and business.
American shoppers continue to gravitate toward more healthful foods and natural personal care products. But it may come as a surprise how many of these newly-popular organic, natural and socially-focused companies are owned by larger conglomerates.
In some cases, corporate behemoths come along, gobble up smaller competitors and basically transform them into yet another one of their already-established brands. But when done right, these partnerships can be a boon for social-impact startups, as well as society at large.
In short: Multinational corporations have access to a vast network of packaging and transportation infrastructure, as well as substantially larger market penetration. When given access to these resources while still being able to maintain their missions, social-impact companies can bring their visions to scale -- and their products to more customers.
This week we tip our hats to eight of these David-and-Goliath success stories that prove collaboration yields success.
The company maintains an independent board that has the authority to support and defend its social mission, explained here by CEO Jostein Solheim. In 2012, it became a certified B Corp. And the company continues to voice its political, social and environmental values loud and clear. It took a cross-country road trip with Tesla to promote climate action; launched flavors to commemorate everything from voting rights to racial equality; and even dipped out free ice cream to attendees at the Paris climate talks. Yep, even in the shadow of a Fortune 500, Ben & Jerry's is still out to save the world with ice cream.
Despite customers' initial concerns, this marriage seems to be a happy one. For Annie’s the acquisition meant more product lines, more outlets and more happy customers. The conscious food label has no plans to change. And that's good news for General Mills, as healthy food sales continue to climb. As O’Brien succinctly put it, “Here everyone was saying Annie’s was selling out, but what if General Mills was buying in?” Click here to check out Jen's full 2015 report on Annie's and General Mills, one year on.
Since the acquisition, Campbell's stock price continued to climb. And Plum was able to "reach more families across the country," which was its ultimate goal, said co-founder Neil Grimmer. 3p founder Nick Aster sat down with Grimmer and Dave Stangis, Campbell's VP of CSR and sustainability, to talk about how things are going. Check out the video interview here.
As with all of these partnerships, fans were concerned at first. But founder and "Tea-EO" Seth Goldman insisted the move was necessary to bring Honest Tea’s mission and impact to scale -- and he was right. Honest Tea grew by an enviable 30 percent between 2011 and 2015. It was able to purchase more organic products -- 6.7 million pounds in 2014 -- and vastly increase distribution. The company also used its savings on bottling and logistics to expand its fair trade purchases.
Stonyfield's sales topped $360 million by 2013, co-founder Gary Hirshberg wrote in an op/ed on TriplePundit. After nearly a decade under the Danone umbrella, Hirshberg wrote freely about the need to boost organic sales, both for our health and that of the environment. He touched on controversial topics like GMO labeling, climate change and systemic poverty, all without fear of 'the big guy upstairs.'
For its part, Danone is striving to improve sustainability at Stonyfield, and within its broader operations. In 2013, it commissioned German software producer SAP to calculate the carbon impact of its 30,000+ products. And Stonyfield even made a foray into packaging-free yogurt, proving even the weird is not off-limits in this partnership.
Some in the financial community called on Kellogg to further absorb Kashi's operations to turn sales around. But Kashi, for its part, is returning to its social mission to accomplish the same job. Through a transitional ag protocol launched with nonprofits, the natural label and its parent company hope to boost the supply of organic food -- a boon for their business as well as others. We're not ready to label this union a dud just yet. Let's keep our eyes peeled.
Want to know some of the other large companies behind your favorite organic brands? Check out this interactive graphic from the Washington Post.
Image courtesy of Ben & Jerry's
Mary Mazzoni is the senior editor of TriplePundit. She is also the co-host of 3BL Forum: Brands Taking Stands LIVE! and the producer of 3p’s sponsored editorial series. She is based in Philadelphia and loves to travel, spend time outdoors and experiment with vegetarian recipes in the kitchen. Along with TriplePundit, her recent work can be found in Conscious Company and VICE’s Motherboard.