Green Marketing Strategy

Green Marketing Q&A with Seri McClendon, CLEAN Agency CEO

Thursday, July 28, 2011 by Seri Mclendon

The 2011 Green Brands Survey recently found that consumer interest in green products continues to increase and has expanded across categories – from personal care, food and household products to automotive, energy and technology goods. Companies across all sectors are rolling out new and or improved products touting eco-friendly attributes. With such a varied selection of products making green claims, how does one make an educated decision on the best products for their family and lifestyle? Seri McClendon, chief executive officer of CLEAN Agency, shares insight on this issue.

Seri McClendon

What are businesses doing to meet consumer demand for eco-friendly products and services?

Sustainability has become a key business issue for consumer product companies. They recognize that in order to remain competitive they must shift to meet the changing demands of consumers and of the environment. To do this, businesses are taking a critical look at their supply chains and determining how they can produce better products that have a reduced impact on the environment and can still deliver on their brand promise. Some of the ways this is being done include responsible raw material sourcing, more efficient manufacturing processes and reduced, reusable or recyclable packaging materials to cut waste to landfills. Companies are also beginning to highlight such innovations on their product packaging to promote their commitment to environmental stewardship and gain loyalty from like-minded consumers.

When shopping for green products, what should consumers know about “greenwashing” and how can they evaluate eco-friendly product claims?

Greenwashing has received a lot of attention lately as more and more businesses try to capitalize on the growing consumer interest in green products. Greenwashing refers to deceptive marketing used to promote a misleading statement or perception about a product, policy or service.  The first step in making smart purchase decisions is to educate yourself before heading to the store. GreenerChoices.org is an excellent resource for consumers that want to learn more about specific product claims and their meaning. The site provides independently researched, unbiased information on product safety, health and nutrition, updated label claims and other related topics.

Certification labels from reputable environmental organizations can also help consumers choose sustainable products. The Environmental Protection Agency, for example, provides Energy Star certification for energy efficient home appliances and the Design for the Environment label for high performance, cost effective and environmentally-friendly cleaning products. Responsible consumer product companies like Seventh Generation, Patagonia and Aveda also document and substantiate product claims on their web site.

How can consumers further drive sustainability efforts of their favorite brands?

Be vocal! Let the brands you patronize know how you feel about their products and their efforts towards becoming more sustainable. Share feedback on a company’s web site, comment on news stories written about sustainable innovations of your favorite brands and leverage the power of social networking sites like Facebook and Twitter to let companies know what you want from their products and services.

ABOUT SERI MCCLENDON

Seri McClendon is the CEO of CLEAN Agency. She is an industry veteran with more than 22 years of marketing experience. Seri formed CLEAN, an integrated agency serving the sustainable business sector, from her passion for environmental studies, policy and science. She holds a Masters degree in Geography with an emphasis in Industrial Ecology and a BA in marketing. Seri is a member of The USC Center for Sustainable Cities Advisory Board and was recently recognized as an Outstanding Woman in Environment and Energy Efficiency by the 2011 Women in Business Awards. 

Marketing to the "Hyphenated Person"

Friday, June 24, 2011 by Heather Munro Marshall
elephant journal is proud to be the official new media partner with LOHAS Forum. Click here for our ongoing LOHAS coverage, and be sure to follow our live coverage on Twitter. [Our editor Waylon Lewis is honored to serve on two panels during this event.]

By the year 2050, 25 percent of the U.S. population will be of Latino heritage. Green businesses, are you listening?

Actor Julia Ahumada Grob, who was raised by a Chilean father and Jewish mother in New York City, and produces the original Web series East Willy B (a cross between Cheers and Spike Lee's Do The Right Thing), calls herself a "hyphenated person."

Grob helped create the digital show in part to represent the New Generation Latino, or people like her.

Green marketers trying to sell their products to the New Generation Latino, take note. These potential customers are:
  • Urban 
  • Culturally proud/sensitive
  • Tech/Media savvy
  • Global
  • Socially Conscious
The key to marketing to this audience, Grob says, is to be authentic. A lesson Coors Light learned the hard way.

The brewer was forced to pull its its  Puerto Rican Pride ad campaign after two days, following a heated digital protest within the urban Puerto Rican community.

Further proof that, thanks to Twitter, Facebook and the like, social responsibility is here to stay. Your customers won't stand for anything else.


Heather Munro Marshall is a freelance writer, yoga teacher and creator of Namaspray® yoga mat cleaner. She is blogging from the LOHAS Forum 2011.

The Greenest Product You can Buy is the one You Don't. ~ Jolee McBreen

Friday, June 24, 2011 by Jolee McBreen
 

The Latest LOHAS Consumer Trends

The below article is brought to you as part of elephant journal’s ongoing coverage of LOHAS Forum. For our complete coverage, be sure to follow elephant on Twitter and Facebook.


I walked into the main ballroom at the St. Julien and scanned the dimly lit room for a seat while Steve French, dressed in a large paper bag, and Gwynne Rogers, covered in plastic bags, began speaking on stage. I knew right then this wasn’t going to be just any presentation.

Not knowing much about LOHAS until two weeks ago I was excited to learn more about who the LOHAS consumer is – and who they’re growing to be. French and Rogers took us through various statistics, facts and opinions with humor as well as knowedge.

The first topic on deck was the green movement. French gave the first point stating that green is as strong as ever and the recession has been a good thing in regards the green market.

He gave a number of great points including, that sustainability itself is not sustainable. Businesses must look at why consumers are buying in the first place. Even though he acknowledged it was “an oxymoronic statement,” French insisted we were shopping our way to sustainability.

The greenest product you can buy is the one you don’t buy.

On the opposing side, Rogers stated it was naïve to think that the recession hasn’t had an effect on the green marketplace. Showing that consumption of organic food and natural cleaning products, for example, have fallen at an average of 10%.

Most consumers are taking into account the price of the products and not acknowledging their carbon footprint. 70% of consumers base their purchase decisions on price.

It was great to discuss both positive and negative views, especially when it comes to the green movement. So much information and opinions can be extremely one-sided. And to get the info in costume made it that much better.

Some interesting facts about the LOHAS consumer:

  • – Different segments: naturalites, drifters, conventionals, and unconcerned – but we didn’t talk     much about the unconcerned since, as French said, “we don’t like them.”
  • – Generally the first ones that try new eco-friendly products
  • – High interest and active in social media and gorilla marketing
  • – Used to predict upcoming trends
  • – Always looking for the “deeper green” – greener versions of existing products

French and Rogers also ran through the positive and negatives of operations for your business.

Is it better to have a green product or to run your operations in a green way?

On one side, the view was that the product itself doesn’t have enough impact and therefor how you make the product should be ethical and green. On the opposing side, the product should be green because that’s what consumers are paying for.

Rogers took both approaches – go big or go home, stating that if you’re going to make the effort to create a green product for consumers, you might as well go all the way in your production as well.

In the realm of how to market to LOHAS consumers, “Keep it simple, stupid.”

There has been an information overload when it comes to the green movement, but some still don’t even know what sustainability means – 15% haven’t even heard of it. Yes, you read that correctly.

The most important things to take away from French and Roger’s presentation:

  • – It doesn’t have to be paper or plastic, we have to integrate new products, sources, etc., without alienating others – and people
  • – Needs to practical and sustainable
  • – Work towards producing green products and operations
  • – Think beyond your current geography

Overall, find a balance.

10 Things That Make the LOHAS Forum Unique

Wednesday, June 8, 2011 by Ted Ning
1. Cross section of attendees is like no other event. Where else will you find Fortune 500 companies shoulder to start up entrepreneurs next to mainstream media and celebrity. It is a great networking event for those who want to stretch their comfort zone and meet new people.

2. Permission to drop the armor of image is granted and expected. Everyone at the event wants to know who each other is at heart first and then get to professional interests second. This makes the attendees really open to each other and sincerely attentive to each other’s needs.

3. On the cutting edge of what is next. Many events have large corporations as the core of their speakers where at LOHAS you see more of the larger corporations in the audience learning how to enter the LOHAS market.

4. Boulder City is the epicenter of LOHAS activity. Despite being just over 100K in population it is the hub of organics, clean tech, outdoor industry, spirituality, alternative medicine, technology, entrepreneurship and is beautiful place to be in June when the LOHAS Forum occurs.

5. St. Julien Hotel & Spa is the best hotel in Boulder and has a very accommodating staff and has fully embraced sustainability. They provide the measurements for landfill alleviation for the LOHAS forum and organic and locally sourced meal options. Last year we were able to recycle 87% of our waste from the event. We strive to do more this year. The spa is top notch as well. 

6. The LOHAS gift room is legendary. Rather than provide a pre stuffed conference bag of brochures that are typically dumped in the hotel room we provide a gift room of various items from LOHAS companies that attendees can pick and choose from. Attendees love this and the gift bags are usually quite stuffed when people leave the room!

7. Market data worth thousands of dollars is presented by a variety of green market trend specialists. Those that are interested on what is happening in the LOHAS space can collect a tremendous amount of insight from these highly sought presentations.

8. Program content transcends green business
 to include elements to connect with the human spirit and community in a way that is energetic and inspiring.

9. A paperless program for this year and digital signage. The program will be on an app that is also a mobile website. The app will be downloadable on iTunes and will allow those who are not attending to see what is happening by reading the social media feeds, text alerts and uploaded images by attendees. Conference signage are flatscreen monitors that double as media centers for video.

10. Not just a conference but a community celebration! We have a variety of ways built into the event ranging from morning yoga and meditation to musical entertainment to after parties to engage the senses for attendees.

If you are an attendee and have other elements I have forgotten I would love to hear them. Please share!

Vanilla Ice, Skinny Jeans and Complexity: On New Marketing Programs for the LOHAS Consumer

Thursday, March 31, 2011 by John Rooks

My company has been firmly planted in the green space since our birth in 2003.  We were not first, but we were pretty early.  A lot has changed.

 

We have made our way through the rapid change by studying the culture.  We produce content that is relevant to the various sustainability movements (there are multiple) taking shape around us.  Here are some examples of the type of content we produce to understand it all:

 

  • Biennial Green Language Survey of 100 Print Ads
  • Pop-Culture Lens studies exploring the meaning of sustainability in our culture
  • Our soaplabs design, test and prove innovative strategies with very trusting clients
  • An upcoming report that breaks emerging marketing trends into 6 narratives

 

Our latest green language study will be available (for free) later this month (if you’d like an advance copy, let us know here).  As a sneak peak, here is one of the findings: 

 

Green is no longer a driving element in print ads.

 

As we write the report, I’m reminded of a talk I gave at the LOHAS Forum in 2007.  The talk was called A Beautiful Ambiguity: Language, LOHAS and the Mainstream (If you’d like to download the nostalgic pdf, go here).  I remember saying to the crowd, "once green is mainstream our competitive advantage is gone."  My point was that we were all hyper focused on green as THE thing.  And at the time it was THE thing.  But at some point the rest of the market was going to catch up with us, and we would need to evolve.  That time has come.

 

I used pop-culture to illustrate the point and show how trends evolve.  For example, when bubblegum pop music starts using hardcore street language (or gang signs), the street must change how it represents itself – it’s no longer dangerous. It pushes it further.  When the skinny suburban kid steals your language, urban kids don’t want it back.  Or, more contemporarily, when your mom comes home in skinny jeans, things must change.  This is the way culture evolves – change happens in the margins, mainstream absorbs and the margin pushes it further. 

 

Fringe – Margin – New Fringe – New Margin – New New Fringe – New New Margin…and so on.

 

And throughout this continuous cycle of cultural evolution, the entire system becomes more and more complex.  It’s not unlike energy efficiency. The first 40% of efficiency (perhaps sustainability in general) was the easiest.  But by now we have changed the light bulbs and weatherized the house.  The next 40% will get progressively more complex and challenging.  It will require new technologies, processes, innovations and ways to measure impact. 

 

Similarly, sustainability marketing  programs need to engage consumers in new ways.  They need to be measured in new ways.  They must push the dialog further.  The programs that companies design to embody LOHAS are growing in complexity out of necessity.  I think this is a good thing.  It is part of cultural evolution.  One of the projects that graduated our soaplabs was More Than Promote - a strategy that measures marketing by its corporate, civic and cultural impact. 

If we’re not innovative in how we fundamentally approach marketing, we end up looking like a modern version of Vanilla Ice sampling Vanilla Ice sampling Queen. 

 

By John "Ice Ice Baby" Rooks

Beware of the False Certification

Tuesday, February 15, 2011 by Jay Eckhardt


It’s hard to believe, but then again it’s not – the Federal Trade Commission has challenged a company that was selling a scam environmental certification.  Not surprisingly, the agency filed a press release last month announcing that FTC is prosecuting the marketers of the “Tested Green” environmental certification program, seeking to bar the company and its founder from engaging in this type of deception.  The agency also seeks a twenty year compliance order, to supervise the individuals responsible for “Tested Green.”

Tested GreenAccording to the FTC’s complaint in the matter, Tested Green certification was sold at two price levels, for $189.95 for a “Rapid” certification and $549.95 for the “Pro-Certify” Tested Green certification.  However, the only real requirement to obtain the certification was a willingness to pay for it.  In exchange, Tested Green would provide logos and a link to a Tested Green web page that would “verify” certification.  As the FTC press release quipped, Tested Green certifications “were neither tested nor green.” 

Apparently, the FTC has found that 129 customers were duped by (or perhaps complicit with) the bogus Tested Green certification program.  If consumers or competitors of these customers were potentially harmed or mislead by such certifications, don’t be surprised to see additional fallout from this investigation. 

The problem of false certifications is certainly not limited to “Tested Green.”  In the 2010 Greenwashing Report, the marketing firm TerraChoice notes that this is one of the bigger problems with environmental marketing claims, finding that over 30% of the 4,744 products examined for the 2010 Report advertised false certifications.  If that is true, the FTC’s enforcement action against Tested Green isn’t exactly a clean-up in the industry. 

To be fair, the FTC’s new proposed Green Guides do attempt to address this problem directly, noting that bogus certifications will be prosecuted.  Still, given the modest number of green marketing enforcement actions in recent years, it is hard to imagine that FTC will launch a major offensive against false certifications.  On the other hand, a few FTC prosecutions, the TerraChoice Greenwashing Report, and other means of enforcement available to consumers and competing companies, should serve as warning to would-be false certifiers and those who would purchase their bogus certifications.  The market is wise to this type of cynical green marekting strategy.

Joseph ("Jay") Eckhardt is an attorney, and the editor of the FTC Green Guides Resource Page at the law firm Stoel Rives LLP, based in Portland, Oregon. 

California Consumers Challenge ‘Carbon Negative’ Water

Friday, January 7, 2011 by Jay Eckhardt

Hibiscus
The rising tide against greenwashing may have swamped the Fiji Water Company.  The issue is carbon offsets.  Is Fiji Water truly “carbon negative” as the company has advertised?  A lawsuit filed last month by the Newport Trial Group, a law firm representing California consumers, argues that it isn’t.  The problem isn’t that Fiji hasn’t tried to account for and offset carbon emissions.  The problem, according to the consumers’ complaint, is that Fiji relies on carbon offsets that are premised on speculative offsets that “may or may not happen in the future.”  Once again, the market is looking closer at green marketing claims – and class action plaintiffs’ attorneys are striking out against vague claims.   Whether Fiji Water has actually deceived consumers with its ecofriendly claims is yet to be determined. 

Certainly, the Fiji Water case isn’t the first consumer class action that alleges deception in the context of greenwashing, but it is another indicator that green marketing can be risky.  And while there has been significant attention to the Federal Trade Commission’s release of new Green Guides for environmental marketing in recent months, the Fiji Water case also serves as a reminder that the FTC isn’t the only stakeholder empowered to challenge environmental marketing claims. 

What did Fiji Water do to provoke this challenge?  According to the complaint, the key issue is that carbon offsets purchased by Fiji rely on something called “forward crediting,” a method of providing carbon offset credits based on future offsetting activities.  The complaint alleges that forward crediting has been discredited by the Stockholm Environment Institute.

The fact that Fiji Water went beyond merely trying to offset its carbon emissions, and claimed that its products are “carbon negative” based on the purchase of carbon offsets equal to 120% of its carbon emissions is also very relevant.  This may be  a case of “no good deed goes unpunished” – if Fiji in fact did purchase bona fide carbon offsets that will materialize in the future.  On the other hand, if the facts show that Fiji purchased speculative or poorly administrated carbon offset credits, expect the California consumers to demand a big settlement.  (The complaint argues that Fiji Water’s “carbon negative” advertising helps the company charge super-premium prices.)

An interesting aspect of the complaint is that while it does not reference the FTC’s new Green Guides, the consumer challenge against forward crediting tracks with the FTC’s thinking.  The proposed new Guides advise that  “marketers should clearly and prominently disclose if [their] carbon offset represents emission reductions that will not occur for two years or longer.”  The Green Guides are not California law of course, but California’s consumer protection statute does actually make reference to the Green Guides and provides a legal defense for companies that can show their marketing claims are consistent with the Guides.  

Regardless of where the Fiji case actually goes, it teaches a couple important lessons to all marketers.  First, remember that the FTC isn’t the only “enforcer” empowered to challenge a green marketing strategy.  Bogus, vague, or speculative claims may be challenged by class action attorneys under state laws, especially in big states like California.  Second, the guiding principle for green marketing claims has to be complete disclosure.  A company can merely claim that it purchases carbon offsets, but that claim is risky without further disclosure of the fine print.

Guest Blogger Joseph ("Jay") Eckhardt is an attorney at Stoel Rives LLP, based in Portland, Oregon.  


Introducing the More Than Promote(R) MashUp Awards

Monday, January 3, 2011 by John Rooks

Just what the world needs – another design award.  

 

The More Than Promote® MashUp Awards give sustainability-minded graphic designers and green marketing experts a chance to take on their favorite (or least favorite) brands and give them a More Than Promote makeover.  Its a graphic and strategic design challange for green marketers.

 

More Than Promote campaigns are designed to have the following metrics:

 

Corporate Value – Classic ROI for ad campaigns - like sales, traffic, brand recall.  Exsisting campaigns likely already have this (or better), but you can change them.


Civic Value
– Add a positive benefit that the promotion itself offers to the community or the planet in general.  Pick up garbage, paints bike lanes, financial literacy, cures cancer.  Make sure the Civic impact in on brand, or at least moves the brand forward.


Cultural Value
– Add a progressive positive dialogue through the promotion that moves our culture forward.  What culture change is needed to sustain the brand and the planet?

 

Here's the task:  Pick a brand campaign and mash it up with the values created through More Than Promote.  Have fun with it.  What MORE can promotion do?

 

Here are a few MashedUp examples to get your started:


MashUp Sample 1:  NetFlix

NetFlix uses their two-way envelopes allowing soldiers and their family's to communicate for free with positive messages of support and pride.

 

Corporate: Branding

Civic: Free communication for troops and families.

Cultural: Positive messages of support.



 

MashUp Sample #2: DunkinDonuts

DunkinDonuts launches a promotion to promote and support home composting. Pick up your bag of used coffee grounds at your local DD's.

 

Corporate: Store foot traffic, less waste disposal.

Civic: Increase composting, waste steam reduction.

Cultural: Introduce composting language and action to target demo.

 

Now it’s your turn.  Submit your own promotion image(s) and strategy MashUps for the 2011 MTP Mashup Awards.  Winners will be announced at this year's LOHAS Conference in June in Boulder Colorado.

 

You can find more about the strategy, the rules and submission guides right here.




 

FTC's New "Green Guides" Finally Emerge

Friday, October 8, 2010 by Jay Eckhardt

After almost three years of consultation and planning, and following a great deal of anticipation in recent months, the Federal Trade Commission has finally published “Proposed, Revised Green Guides.”  This latest version of the Green Guides will be open for public comment until December 10, 2010.  After that, according to an FTC press release, the agency will issue a final, official version of the Guides. 

It’s a sad truth, but consumers and regulators view environmental marketing claims with increasing skepticism.  While many companies make fair claims about the environmental attributes of their products, others are exploiting consumer demand for sustainable products with false or unsubstantiated marketing claims.  Thanks to such tactics, the term “greenwashing” has entered the marketing lexicon.  The environmental marketing firm TerraChoice brilliantly describes and defines greenwashing in its 2009 Greenwashing Report, and concludes that many, if not most, environmental marketing claims are unfounded. 

In this climate, it’s no surprise that the FTC is stepping up efforts to combat greenwashing.  A key step in this new enforcement effort is to provide more guidance on environmental marketing claims through the Green Guides.  The Guides (last updated in 1998) provide non-binding “interpretations” of federal consumer protection regulations, namely Section 5 of the FTC Act (15 U.S.C. § 45), which is the law that empowers the agency to punish deceptive practices. 

The Green Guides provide common-sense instruction on green marketing strategy, and more specific guidance on particular marketing terms that were popular in 1998, including “biodegradable,” “compostable,” “recyclable,” “refillable,” and “ozone safe.”  The new proposed Green Guides address those terms, but also provide guidance on new terms and concepts found in present-day green marketing, such as:

  • environmental seals of approval,
  • “free-of” and “non-toxic” claims,
  • carbon offsets,
  • claims concerning renewable energy, and 
  • claims concerning renewable materials. 

Given the explosion of environmental marketing claims in recent years, revised Green Guides are well overdue.  But what kind of impact will they have?  The new Guides do not really change the rules; the FTC has always identified the Green Guides as “guides” useful in applying consumer protection law.  Ultimately, product claims for clean technologies will be evaluated under the FTC Act itself, for their potential to deceive consumers.  If claims are vague and unqualified, or cannot be substantiated by scientifically proven facts, they are going to be suspect. 

The FTC provides a brief summary of the proposed Green Guides here, provides the complete Guides with analysis and comment here; public comments on the proposed Guides may be submitted here.  Read more insightful commentary on the new Green Guides here, and here.

Guest Blogger Joseph ("Jay") Eckhardt is an attorney at Stoel Rives LLP, based in Portland, Oregon.
 

Is the Eco Index a Good Way to Measure Sustainability?

Wednesday, September 8, 2010 by Scott James

The Outdoor Industry Association (OIA, home to such brands as Adidas, Levi’s, and Nike), recently launched its benchmarking Eco Index worldwide, hoping to cement it (and itself) as the leading sustainability measurement tool for apparel and more. In fact, this group clearly has its sights set on taking this tool beyond its own industry boundaries to others seeking better understanding of a green marketing strategy.

Although the site is gaining momentum while still in beta, it is not moving fast enough for some. The folks at Timberland have a competing rating system called the Green Index they launched in 2007, complete with a snazzy website and social media-friendly branding. Getting end purchasers to recognize and use the index is crucial. I discussed this with Tom De Blasis, Global Design Director for Nike Soccer, while he was on a road trip recently. He observed ”the third party nature of the Eco Index can cut through the corporate noise and terminology clutter that has lead to consumer confusion.”

The products within the OIA are diverse, from footwear to filters for water, all aimed at getting us out from behind our desks and into the great outdoors. But when you dig deeper into this toolset, you can see how it could be applied to a number of different industries.

I asked Kim Coupounas about it. She’s the Chief Sustainability Officer of GoLite, past chairman of the OIA board, and a current member of OIA’s Eco Working Group, which launched the tool. Coupounas explained “the Eco Index is completely open-source and available for use by all companies, not just those in the outdoor industry. While it’s rooted in the outdoor industry, it has the ability to be applied within most other industries and sectors.”

While companies can score points for fairly dubious “improvements” – Levi’s gets points for telling me to wash my jeans in cold water to save energy (duh) – the majority of the categories for scoring points are environmentally solid. For many companies, the Eco Index will become a serious motivational tool, applicable to everyone from the CEO to the unpaid intern. Dan Marriner, a designer for Element Skateboards, commented, “for companies that have been performing well in terms of environmental sustainability, the Eco Index is a positive motivation to continue fine tuning the way products are made. For others it is a kick in the pants that will either motivate them, or separate them from an increasingly conscious market.”

But the version 1.0 of the Eco Index falls short is one major area, when looking at the human rights aspect of our supply chains. As we all know, you measure what you want to improve. The Eco Index is the best collaborative effort I’ve seen to date that measures eco-related areas ranging from land use intensity to how the chemistry of the products interacts with human beings. But it falls short of measuring additional impacts on the humans involved in the production process.

If one defines true sustainability as having components related to profit, planet, and people, then the Eco Index is well on its way. For the next version of the Eco Index, I’d love to see the human rights impact better measured, perhaps by marrying it to an existing system such as Transfair USA’s Fair Trade certification or an updated version of OIA’s own Fair Labor measurement system. Then we could truly call this index “sustainable” for the profit, planet, and people.

How do you define “sustainability” in your industry?

Green Beer, But it's Not St. Patrick's Day

Wednesday, August 4, 2010 by Jennifer Schwab of SCGH

ESCONDIDO, CA -- Ever been to Chicago on St. Patty's Day? The river is dyed green, and the hundreds of Irish Pubs scattered throughout the city offer green beer. Thanks but no thanks.

As a big fan of microbrews -- the slightly larger producers brew what is properly called "craft beer"-- I am always on the lookout for environmentally friendly labels. In Escondido, about 20 miles north of San Diego, is what is surely among the greenest breweries in the world - Stone Brewing Co. The idea of an environmentally friendly brew house seems out of synch with one of their best-selling labels, "Arrogant Bastard?" But we will forgive them, after all, it is fabulous marketing tool that has encouraged beer enthusiasts from around the world to come witness this green suds establishment.

2010-08-03-ArrogantBastardAle.bmp

The story of Stone Brewing Co. begins with the two founders, Greg Koch and Steve Wagner. Koch owned recording studios in L.A. and Wagner was a studio musician who rented space. Serendipitously, they ran into each other at a "How to Make Microbrews" seminar and, as they say, the rest is history. Since its founding in 1996, Stone Brewing has become one of the largest craft beer producers in America, with annual output of well over 100,000 barrels.

What makes Stone green? Only the largest, operating room clean, state-of-the-art facility you've ever seen, a huge 100,000 foot building tucked in an anonymous area of Escondido. On a guided tour with Stone's knowledgeable Director of Communications, Ken Wright, we learn that the hundreds of thousands of pounds of by-product created during the brewing process (it looks like wet sawdust) is fully biodegradable and trucked to local farms for use as cattle feed. The plant has a full gray water recycling capability to help cut water consumption (this is critical because the brewing process is very water-intensive), and the roof is adorned with solar panels to help reduce the enormous energy consumption brewing requires by almost one-half.

All Stone bottles and cardboard carriers are fully recyclable, and the plant was built using a variety of reclaimed woods and other metals. One of the most impressive features of the tour was seeing the process from brewing the hops, to bottling, to hauling off for distribution. Unfortunately a rarity in modern day American culture - a vertically integrated manufacturing process. There were costs involved in making Stone a green operation, but the founders determined that this was worthwhile investment for business and environmental reasons. Stone has not really advertised a green marketing strategy, instead preferring to let the sustainable design speak for itself and hope the word spreads virally and by reputation.

A beautifully designed one-acre beer garden lies adjacent to the brewery; visitors can meander along the heavily landscaped pathways and walkways while sipping the wide variety of ales, hefeweizen and seasonal brews. Although I am a Belgian-only beer drinker at heart, the spectacular facility produces increasingly good seasonal beers such as Levitation Ale and Ruination, as well as their mainstays Stone Pale Ale and IPA, and of course Arrogant Bastard.

Stone Brewing Tour from stonebrew on Vimeo.

Our only criticism of the entire operation, and this is echoed in many internet reviews by consumers, is the food. The restaurant is very appealing visually, the design, green building techniques and materials used are breathtaking. Unfortunately, the grub leaves a lot to be desired. I do, however, admire the Bistro's "Meatless Monday" promotion. As a greenie, even if the food is horrendous, you gotta love their enthusiasm for vegetarianism! They are the largest consumer of locally grown, organic ingredients in San Diego. The Meatless Monday credo is as follows:

"If you have dined with us before, you already know that we use locally grown, organic ingredients as part of our dedication to sustainability, community, and better health. Now we are kicking it up a notch by offering a meatless menu on Mondays. Meat dishes are available on request but we encourage you to make a commitment to your health and the environment by trying our Chef's fantastic vegetarian creations. You won't miss the meat!"

2010-08-03-interior1_07_12cc.jpg

Tours are available twice daily. Take one you'll be pleased to see how even an inherently non-green activity such as craft brewing can be made much more energy efficient and sustainable with some forethought, commitment and investment as demonstrated by Stone Brewing Co. As always, I invite your comments and recommendations of other green brew-ha!

 

Follow Jennifer Schwab on Twitter: www.twitter.com/SCGreen_Home


We can muse over what can be, but we are living what is.

Friday, June 11, 2010 by Ted Ning
There it was, right in front of me.  Children gathered in groups, in various incarnations of homogenous “uniforms” that are no doubt found in every grammar school across the country.
 
From afar, I could see easily identify the sports-minded, the musicians, the free-styling artistes and the more academically-minded readers -- but as I got closer, the demarcations that distinguished the groups blurred.  There were athletes catching up with school work, dancers changing into soccer uniforms and everyone -- and I mean everyone -- was sporting Silly Bandz on their wrists.
 
Yes, the comfort in commonalities is no doubt why kids instinctively gravitate towards others who share the same interests from a very young age. But the struggle for individuality within the group provides the rich exchange that allows children to grow into adults who appreciate the differences that make us individuals.
 
The sustainability movement has its niches, too. No self-respecting marketer would declare that there is only one type of customer, yet how many distinctive buckets do you need to understand the green market? Furthermore, once you settle on your definitions, how long do you hold onto them?  It has been said that the one constant is change. People are ever-evolving as the marketplace greets us with new standards, new products and services to meet needs that aren’t always obvious even to the consumers who purchased them.
 
As socially conscious marketers we have a puzzle in the paradox of green: we wish to move the needle to a world that is less dependent on “stuff” -- yet our purpose as manufacturers and retailers  is to sell what we make to turn a profit. 
 
One could argue that nothing is really sustainable as long as humans are involved.  We are always taking, making, breaking and shaking up the model -- and along the way, we use or make new components to meet our needs. What is so interesting to me is that we have an unquenchable thirst for the new.  In fact, technology has created new markets and dependencies (think fax, cell phone, now Twitter, Facebook, etc.) that have created a new generation of junkies for products that didn’t even exist but 5 years ago!
 
So how do we reconcile the need to improve ourselves and our surroundings with a mandate to consume less?  
 
It is a conundrum for all marketers, and in particular those who have chosen to make their companies and their brands mouthpieces for the movement.
 
What is the biggest problem we have as promoters of green products?  
 
OURSELVES. We forget who the customer is and why they really are attracted to our solution. We tend to get caught up in the romance of sustainability, the bigger purpose, the mission.
 
Our customers? Not so much.
 
Each of us has a vision of who we are, the bigger group we fit into, and the way we deviate from that group. We buy to meet a variety of needs -- some, vital to our existence (food, shelter, health), who we are as part of a group (suburbanite, executive, farmer, teacher) -- and other needs that are more subjective in nature (fashionable, artistic, knowledgeable, spiritual).
 
If you look at the way most companies group customers in various shades of green -- through the lenses of how we (and our customers) see ourselves, you’ll see how far off the mark we are.
 
It feels funny to write it, but perhaps it is time we throw out this model and start fresh. (Or maybe “recycle” what works, and be more efficient with our approach.)
 
Green shouldn’t be about denial.
Green shouldn’t be about pain.
Green shouldn’t be about sacrifice.
Green shouldn’t be all about the planet.
 
(Wait a minute! That last one sounds so heretical!) 
 
Truthfully, the planet will continue to exist without us. It may take a long time, but it will heal itself.  It is us who are in trouble. We are arrogant to think that we can continue to support humanity if we destroy the very thing that sustains us.  In that light, sustainability is the ultimate exercise in practicality!
 
Green should be tied to real life expectations.  Not some idealized vision of what should be.  We can muse over what can be, but we are living what is.  How do we improve on the here and now? How do we make things taste better, improve our health, cost less, use fewer resources, give us more time to pursue what interests us? 
 
Sustainability in my mind, is all about balance and the pursuit of happiness. That is how we need to segment our customers: by what they need to achieve their own vision of where they fit into the world. 
 
We must remember that consumers are just like us when we take off our marketing hats and put down the green Kool-Aid. They see themselves as part of a bigger group and they buy products that make them feel good within their means.  Means often refers to money, but time, convenience, access -- they are all “means” as well. 
 
So when we are segmenting our customers and sharing the benefits of products that are relatively (note that term!) better than traditional products, we need to explain how the product makes them happier, more successful, more like the vision they hold of themselves. We need to focus on the reasons why our products let them be the persons that they are.
 
We need to start equating sustainability with plain old common sense.  We need to segment people into groups that make it easy for them to see how our products fit practically into their lives. Only then will the paradox of sustainable consumption be resolved.

Written by
President, Founder earthsense

The Globalization of LOHAS

Tuesday, June 1, 2010 by Ted Ning
Originally content by Andy Baker of the Mobium Group

GlobalWith LOHAS spreading across the globe over recent years, LOHAS Journal thought it timely to reflect on what is driving the phenomenon globally, some of the key differences in interpretation across the world, and what binds LOHAS and LOHASians together—wherever they are.

Businesses the world over are leveraging LOHAS as a way to understand the consumption preferences of a growing number of people who care deeply about personal, community and planetary health and well-being, and are willing to spend accordingly.

While this theme acts as a backbone for LOHAS globally, significant differences exist in the interpretation of LOHAS from one geography to another. Not surprisingly, these differences tend to be largely driven by local cultural, environmental and social nuances.

For example, according to Peter Salmon from Moxie Design Group, LOHASians in New Zealand express their LOHAS values through outdoor experiences, seeking a connection with the landscape and concern about social issues.  This differs from U.S.-based LOHAS consumers, who typically have a stronger focus on personal well-being.  In Australia, the situation is different again, with environmental issues of drought and climate change hitting many Australians hard in their own backyard. Severe water restrictions are forcing Aussies to change how they think about their much-loved gardens and lawns.

CERTIFICATION KEY TO MARKET ACCEPTANCE
A key theme emerging from European and Australian studies is consumers’ desire for certification marks or “trust” marks from credible certification bodies, providing independent verification that the product lives up to its LOHAS claims. Supporting this claim are the findings of a  recent Porter Novelli report, which revealed that Europeans were 32 percent more likely than American consumers to buy products with such marks, and Mobium Group’s Living LOHAS report, which found similar conclusions among the Australian population.

LOHAS IN ASIA
Despite many similarities, key differences have emerged in the use of LOHAS between Western countries and the countries of East Asia—including Japan, Taiwan and South Korea, where LOHAS is a booming consumer term. The emergence of LOHAS-branded foods and beverages, fashion labels and even LOHAS department stores heralds a new use of the LOHAS term as it crosses from business-speak into the consumer vocabulary.
While most Western consumers would draw a blank if asked for a definition of LOHAS, approximately 70 percent of Japanese adults at least recognize the term while up to 40 percent can articulate its meaning, according to Toshi Ide of the Japan-based LOHAS Business Alliance.

But how is LOHAS really interpreted in Asia? In China, LOHAS has been roughly translated to mean “good life” and has even been picked up by Chinese state radio. And English-language website Chinadaily.com.cn has published several articles referring to “escaping city life” and enjoying LOHAS experiences on the weekends in the countryside surrounding Beijing.

In Singapore, the city state’s Tourism Board markets the country to its Asian visitors as the LOHAS city—focusing on its spa resorts, authentic Nyonya-style cooking and its water recycling efforts (a necessity in such a small island nation, as the key to its LOHAS claims).

The emergence of LOHAS as a consumer brand has brought with it a range of organizations seeking to capitalize on the term, with varying levels of commitment to the values of core LOHAS consumers offered through a wide a range of products and services.

INNOVATION
Small and medium-size enterprises comprise one sector where serious efforts have been made to address the needs and desires of LOHAS consumers on platforms of personal and planetary health and wellness. In many cases, these businesses have been the keys to LOHAS innovation.

One example of this sort of innovation is U.S.-based Terracycle.net, a company achieving mainstream distribution and significant success turning waste streams into value through a range of innovative products and services, including a novel approach to garden fertilizer.  With major distribution agreements across North America and licensing interest from across the globe, Terracycle has demonstrated that LOHAS innovation can deliver clear business value.

Another example is Australia-based professional garment cleaners, Daisy (www.daisy.net.au). Daisy has managed to eliminate the harmful chemical, perchloroethylene (tetrachloroethylene) from its dry cleaning process, using a water-based alternative to deliver an odorless dry cleaning solution free from harmful toxins. Such is the popularity of the Daisy service, excess demand currently means a wait of three days to have your suit cleaned! But based on the volume of customers prepared to wait, the LOHAS approach to dry cleaning has again demonstrated a commercial payoff.

Similarly, this year saw the launch in France of Velib (www.velib.paris.fr), a Paris-based commercial bicycle sharing operation that provides bicycles for commuters for a nominal fee. With over 10,000 bikes in circulation across 750 self-service docking stations throughout the city, this model is providing inspiration for cities the world over.
It seems that everywhere you look, there are examples of innovations, often by small and medium enterprises that are working toward more sustainable and healthier outcomes for people and the planet.

CONNECTIVITY
One of the difficulties faced by LOHAS consumers and the businesses that supply their needs is seeking out and finding each other—and connecting.
This key theme is driving the emergence of media platforms that respond to LOHAS consumers’ desire for greater connectivity—to other LOHASians and the organizations that manufacture and retail products and services that meet their values criteria.

Examples of recent activity in this space include Gaiam’s acquisition of Lime.com and zaadz.com, two strongly LOHAS-oriented information and social networking sites. Businesses, including U.S.-based Sustainlane, New Zealand-based Celsias, and a range of other sites across Europe, are springing up across the globe to fill this gap for information, referrals and advice. Discovery Channel recently purchased website Treehugger.com as the online property for its soon-to-be-launched Planet Green program.

Across the globe, mainstream consumer and investor interest in opportunities related to renewable energy, organic food, complementary medicine, low-impact transportation and other LOHAS products and services clearly demonstrates that LOHAS businesses have moved out of the fringes and are now attracting significant investor capital and expertise. Companies and investors that embrace the opportunity that LOHAS presents have the opportunity to take a leading position in the industries that will define the 21st century.


Key Facts: LOHAS in Australia
• Nearly 4 million adult Australians (26 percent of adult population) are LOHAS aligned. 
• Individuals with a LOHAS outlook are drawn from all parts of society; their values and world view are not strongly tied to income, geography or gender.
• Australian consumers currently spend $12 billion on goods and services in the LOHAS market segments, with an overall growth rate of 20 percent expected to continue. The market is expected to reach $21 billion by 2010.
• While 8 percent of the population are LOHAS “Leaders” who are highly committed and active participants in fully integrated healthier, more sustainable lives, the LOHAS “Learners” are the largest of the four segments, identified at 46 percent and standing as a largely untapped opportunity. 
• Learners would like to do the “right thing” but are not sure where to start. Solving for their key barriers, which include price and availability, are paramount to unlocking this market.
Source: Mobium Group, www.mobium.com.au, Living LOHAS Report, 2007.

Key Facts: LOHAS, New Zealand
• 32 percent of population Solution Seekers (NZ Equivalent of LOHAS)
• 57 percent female
• Greatest concentration (29 percent) are in the 45-54 year age bracket
• Slight skew toward rural rather than metropolitan locations
• Income profile of NZ LOHAS is growing over time
Source: Peter Salmon, Moxie Design Group, www.moxie.co.nz
Examples:
1. Media/online:
2. Lime – online portal to information, help and advice on LOHAS lifestyle
3. Zaadz and Riverwired – online LOHAS-oriented social networking sites
4. treehugger.com, Celsias.com – innovative online information sources for LOHAS-related themes and online collaboration
5. lohasguide.de (Germany), Sustainlane.com – LOHAS-related product and service listings and market information
6. Mobium Group – Australian research and strategy business focusing on sustainability and well-being; conducted the first research into Australian LOHAS consumers
7. Macro Wholefoods (Australia) – organic and natural foods retail store chain
8. Eco Age (eco-age.com) – a new store in London claiming to provide “a store, showroom, consultancy and destination that will offer inspiration, ideas and specific domestic solutions for all those who want to lead a greener and more energy efficient life”
9. Terracycle – Innovative company that re-uses waste streams and turns them into value-added products
10. Velib – Paris-based bicycle-share company
11. Flexicar.com.au – Australian car-share business winning support from local governments for their eco-friendly and cost-effective car-sharing program
 

How many badges have you earned?

Thursday, May 27, 2010 by Nathan Rice
Foursquare gameNo, this is not a question for the Boy or Girl Scout among you. “Earned badges” is lingo adopted by the pioneering users of the suddenly popular Foursquare, a geo-location mobile application that is fundamentally altering the way we explore, shop, eat, connect and socialize.
 
Foursquare falls somewhere between mobile game, social media meet-up tool and location-based reference tool. Through Foursquare, I have real-time insight into friends’ favorite haunts, can easily find recommendations for nearby restaurants and have my own personal map to the local social scene.  But ultimately, my real motivation for using it is the gaming component. By “checking in” on Foursquare regularly I accrue points, win “mayorships” and unlock themed “badges.” 
 
Foursquare and its location-based sisters like Gowalla, Loopt, Brightkite, or ecofriendly Carbonfund.org-supported Causeworld are already changing the habits and brand perceptions of social media savvy mobile phone owners.  
 
Restaurants: Imagine sitting in your favorite restaurant. The manager is alerted that you “checked-in” on Foursquare. She finds you and offers you a free dessert for being a loyal customer. How does this experience change the way you view this business? Suddenly this manager can easily identify regular customers and can reward these individuals. It is a built-in loyalty card. 
 
Grocery Stores/Food: As a consumer, consider walking into a Whole Foods, checking in on Foursquare and seeing that your friend recommended Annie’s Organic Macaroni and Cheese over the macaroni and cheese in the deli. Your friend’s “tip” might have just altered your shopping experience. 
 
Tourism boards: A Ferris Buehler badge already exists in Chicago, now imagine “checking in” on the steps in front of the Philadelphia Museum of Art and earning a Rocky Balboa badge? Or in Colorado, how about a Rocky Mountain National Park badge? How about Missouri and Kansas teaming up with Foursquare to create a Pony Express Badge?
 
The possibilities are there for businesses to reach consumers in a relevant and new arena. 
 
Foursquare and its counterparts have not yet hit mass consumer adoption but its million plus users continue to expand. It is a viable tool to consider integrating as part of a holistic green marketing strategy. As businesses and consumers discover its deep potential, "how many and what badges you have?” might take on new meaning for all of us. 
 

All That Glitters Is Green: First-Ever Christie's Green Auction

Tuesday, May 18, 2010 by Jennifer Schwab of SCGH

How about a private lunch with Vera Wang, followed by a visit to her boutique for a $10,000 shopping spree focusing on Eco Friendly Fashion? Or lunch with Ted Danson, plus a painting from his personal art collection? Ladies, how about a day on the set with Hugh Jackman? Or for Yankee loyalists all over the world, dinner with General Manager Brian Cashman plus four game tickets? Want to find out what working for George Steinbrenner is really like!?

There were items available through May 6th at http://www.charitybuzz.com/abidtosavetheearth, which is the silent auction portion of Christie's first-ever green auction. The celebrity-rich live event, held at Christie's near Rockefeller Center in late April, offered similarly unique and desirable items and experiences, all to benefit environmental charities including Oceana, Conservation International, Natural Resources Defense Council and Central Park Conservancy. Indeed, these four charities will end up splitting a pot of around $2 million dollars, a wonderful windfall especially when contributions have been hammered by the Recession.

At the live event, guests entered an environment that looked more like something out of Babylon and Adam and Eve than an auction house. The theme was "a collision between art and nature" and the result was spectacular, especially after entering on the green carpet - literally - surrounded by a throng of paparazzi. A crowd of over 800 attended including a host of celebs such as Candice Bergen, Sam Waterston, Ted Danson, Salma Hayek, Brian Williams, and many more from Hollywood, business, the arts and government. Speeches were short, just a few meaningful words from Christie's Chairman Christopher Burge and Susan Rockefeller (she and her husband David were co-chairs of the event).

This was a great concept, taking what has traditionally been a bastion of the elite -- Christie's -- and putting their vast resources to work for a good green cause. Christie's was supported by Target, Deutsche Bank, NBC Universal and several other sponsors, which resulted in a super high end event that brought visibility to climate change issues and created significant revenue for the general funds of four deserving charities.

I really hope this becomes an annual event for Christie's and that other organizations and NGOs take advantage of this innovative green marketing strategy for fundraising. Everyone knows that the recession has been brutal on the budgets of most non-profit organizations, as donations are down and their own portfolios have been decimated. The green auction idea is a fun and ecofriendly way to raise consciousness as well as funding for the environmental movement. Come to think of it, also very appropriate for Christie's since their very business is sustainability as they sell old items which get "re-used" as they are handed down through generations.

A final anecdote: at risk of sounding like a celebrity hound (I'm not) and a TV fan (I don't watch much), a personal highlight was the chance to visit one on one with Sam Waterston of Law & Order at the after-party, held at the trendy Monkey Bar. I admit to being a bit of a Law & Order junkie, and got to ask him about the departure of Detective Goren, his thoughts on our clean energy future, amongst other tidbits around Oceana and the environment. All in all the Christie's Green Auction lived up to its hype in every way. Click on the link and enjoy your opportunity to participate -- http://www.charitybuzz.com/abidtosavetheearth

 

Follow Jennifer Schwab on Twitter: www.twitter.com/SCGreen_Home


The Conscious Shift in Consumer Behaviors

Sunday, April 11, 2010 by Ted Ning
The global economic downturn has not only affected many people’s wallets it has also caused a dramatic shift in the way people look at the choices they are making in their lives. In the U.S. there is a strong desire to be self reliant and to conserve resources as people prioritize their spending and behaviors towards more purposeful decisions. Choices as small as bringing meals to work rather than eating out, taking public transport instead of spending on gasoline and garden grown foods rather than store bought foods are some examples of trends that are picking up. These are changing the way companies approach green business strategy.

Today not only LOHAS consumers but ALL consumers are demanding a greater value from products and services. This value is derived from a strong desire to make the most of everything that a person has. Considerations including investment, functionality and cost are being assessed and are creating new dimensions of ROI that are increasingly a part of the emotional and social values a brand typically provides.

According to Brandweek.com a new survey by firms Landor Associates, Penn Schoen Berland and Burson-Marsteller, transparency and corporate responsibility have become far more important to consumers in a tough economy. It found that despite the recession, 75% of consumers believe social responsibility is important, and 55% of consumers said they would choose a product that supports a particular cause against similar products that don't. The most surprising findings pointed to the fact that nearly 50% of 18-24 and 25-34 year olds said they are more likely to take a pay cut to work for a socially responsible company—a much higher percentage than any other age group. This may be because this is a year where there seems have been so much social responsibility expressed, especially in light of the earthquake in Haiti. But the report also said only 11% of Americans say they’ve heard corporate CSR communications.


Redefining Luxury

The shift in values in not only from those ages 18-34 but also affluent families who are redefining luxury. A recent study called "The New Face of Affluence," from Dwell Strategy and Research focuses on attributes that drive purchase decisions of newly affluent U.S. households, whose average age is 45 and income of nearly $200,000. These people are called “New Affluents” and claim, "luxury" brands, are no longer important to them, or even relevant; neither is "overall social status." These people have the economy and the environment top-of-mind when making purchase decisions. The study found that most are shunning "conspicuous consumption" in favor of brands that represent quality, aesthetics and authenticity. These attributes, along with uniqueness, integrity, design and performance, represent today's "prestige" for these high-end consumers. There is a shift occurring in society that demonstrates how a brand does not have to be expensive to attract customers. What consumers are now demanding from brands is a new and different kind of relationship. And, as supported by these findings, the days of controlled, top-down brand marketing are over, especially for this sector. These wealthy and would-be elites are actually looking for brand interaction -- a dialogue -- based on integrity, authenticity and performance. And not only are they equipped for interaction, they're demanding it. In fact, Dwell compiled a visual so that brand representative could see, clearly, how the top 50 companies named by the surveyed group compete against one another. The size of the text in the following word cloud connotes its ranking:





So what brands do New Affluents find meaningful, authentic and relevant? Apple, Sony, BMW and Ralph Lauren, unsurprisingly. But Crate & Barrel, Ikea, Whole Foods and Levi's, too. Porsche, Lexus, Chanel and Viking. And Target, North Face, Volkswagen and The Gap. Missing from this segment's 75 favorites list are classic luxury brands like Cadillac, Gucci, Louis Vuitton, Armani and Versace who have yet to demonstrate how they are keeping up with emerging trends.


People Want to Simplify

There are growing desires for purity and simplicity. Companies should respond with a move to simpler inputs, focused messaging, cleaner labeling, streamlined design and easy delivery of goods and services. Society is also demanding the removal of the layers of complexity – a change desired because it becomes easier to determine the true fit of products and services with personal values. This “less is more” trend is resonating with consumers everywhere – purity and simplicity is now the ultimate sophistication! Indeed some companies are doing this. For example the beverage ‘Innocent’ from the UK has an ingredient list of 6 items that are all recognizable fruits with no additives or preservatives. This is very different from typical soda or juice ingredient lists we commonly see in conventional stores. 


Green is Recession Resistant

Green products still appear to maintain their value among shoppers despite the recession. According to a survey on “green” living from market research firm Mintel research firm Mintel 35% of U.S. consumers say they would pay more for environmentally-friendly products. Mintel found the green market outperformed the economy as a whole, growing more than six percent in 2008, followed by flat growth in 2009. The report also finds that the market took a hit from tighter consumer budgets due to the recession and trading down from high-end green brands. Even though the green market grew about 41% from 2004 to 2009 the report finds that the number of consumers purchasing all categories of green household consumer goods declined slightly in 2009, primarily due to the recession with household cleaners and paper products still the most frequently purchased green products.


The Future is Now

We find ourselves facing a complex set of problems that threaten the global population, economy and environment. The recession has sped up the inevitable evolution of our society and economic system that puts businesses and consumers in the driver seat of change. People are paying more attention to what they spend money on and demand a new definition of sophisticated value from companies. Those companies that cannot keep up with the progression of LOHAS consumer demand risk losing market share. Those companies that do respond will not only provide superior LOHAS products but also provide a better company overall for society and the planet. Together we can help transform the problems we have today to the solutions of tomorrow.

 

How Companies Get Mojo from Maslow by Chip Conley at the LOHAS Forum

Sunday, April 11, 2010 by Ted Ning


Chip Conley, founder of Joie de Vivre Hospitality, the largest boutique hotel chain in California, talks at the LOHAS Forum on how Malsow provides new ways to look at business. He provides a very interesting aspect of how businesses can be solutions based with everything they approach and his presentation was one of the favorites for the LOHAS audience seeking insights not only in green marketing strategy but for a refreshing way to approach sustainability management and employee empowerment.

Preparing for the Pitch

Thursday, April 8, 2010 by Ted Ning

Preparing for the Pitch:
Tips for Mission-Driven Startups Seeking Outside Capital

By Matt Lombardi

Raising capital for a LOHAS mission-driven venture is exceptionally challenging and is a key element of successful green business strategy. One obstacle that social entrepreneurs face is a scarcity of traditional funding sources. Conventional investors tend to avoid double-bottom line companies for fear that such investments would yield lower and slower returns. As traditional investors dominate the venture capital arena, finding investors with two bottom lines is not an easy task. 

While there is no single way to attract mission-aligned investors, there are practical guidelines to help social entrepreneurs locate viable backers, understand their needs, and avoid the most common fundraising mistakes.

Where to Find Mission-Aligned Capital
Angel networks, which are groups of individual investors who provide capital to startups, are a viable option for for-profit socially responsible investment ventures. Individual investors tend to consider a broader range of deals than most venture capitalists. An extensive list of angel groups can be found at the Angel Capital Association’s website (http://www.angelcapitalassociation.org). One of the more established groups listed, Investors’ Circle (www.investorscircle.net), is a national network comprised of individual and institutional investors dedicated to backing for-profit social entrepreneurs.

Several double-bottom line institutional lenders and venture funds have sprung up over the last couple decades. A few examples of these institutional investors include RSF Social Finance, Calvert, and SJF Ventures. A comprehensive list of socially responsible funds can be found on Columbia’s Research Initiative on Social Entrepreneurship (RISE) website located at www.riseproject.org   

The U.S. Small Business Administration (www.sba.gov) is a helpful resource for ventures seeking loan opportunities.

Mission-driven ventures that take a non-profit form should consider the extensive list of grant resources found on SocialEdge.org, a website dedicated to supporting social entrepreneurship. A more traditional list of funders can be found at Foundation Center Online at www.foundationcenter.org 

Matt Lombardi is the Entrepreneur Services Director for Investors’ Circle, a non-profit national network of angel investors, institutional investors and foundation officers who seek to balance financial, social and environmental returns.

What Do Socially Responsible Investors Look For?

The array of investment criteria is overwhelming in breadth, however most double-line investors zero in on a few key factors when it comes to making the right investment decision.

Before shopping your idea to investors outside your immediate circle, you will want to be confident in the following:

1.) Strong and relevant industry experience. Investors are said to invest in entrepreneurs, not ventures. If your team lacks experience in a specific area, be forthcoming about your plans to fill that gap. Developing relationships with reputable advisors will also help build credibility.    

2.) Attractive and realistic financial projections. Enough with the hockey stick projections! Being overly optimistic is a sure way to lose credibility. In the same vein, take care not to be too conservative. While being realistic, make the opportunity compelling from an investment standpoint.

3.) Firm understanding of competition. Refrain from minimizing your competition. Acknowledging your competitors demonstrates that you understand the market and are prepared for the challenges that lie ahead.  

4.) Traction in the marketplace. Demonstrating that there is a demand for your product or service is key to peaking an investor’s interest. Documenting letters of intent from strategic partners and potential distributors will also strengthen your value proposition.

5.) Built-in values. Socially responsible investors favor ventures whose mission is core to the company’s business model, rather than just an afterthought.

Fundraising Tips

Investor meetings can vary from a cup of coffee to a full-scale pitch before an investor group. Regardless of the level of formality, keep these tips in mind to avoid common fundraising mistakes: 

1.) Keep it simple. Avoid getting lost in non-essential details. Start with a concise encapsulation of your business concept to draw in your audience from the start. Then deliberately hit the key areas of interest to investors (i.e. competitive advantage, market size and trends, business model, social or environmental impact, management team, financials, and the potential exit).
Practice presenting until your delivery time is consistent
and appropriate for the occasion.

2.) Come prepared. When meeting with an investor or group of investors, a concise 5-15 minute PowerPoint presentation is standard. Come prepared with an updated business plan and executive summary. If applicable, bring a prototype or product.

3.) Engage the audience. Avoid text-heavy slides. Presentations should guide viewers through your key points, not serve as your script. If you want the audience to remember verbal points, provide a handout sheet at the end of the meeting.

4.) Attitude Matters. Appearing “too confident” or “egotistical” is a common mistake that entrepreneurs make at investor meetings. While it’s critical to come across as both passionate and competent, an approachable demeanor will help open a dialogue between you and your potential investors. Simple tactics such as smiling and making eye-contact are essential to making a good first impression.  

5.) Interview your investors. Due diligence should not be a one-sided process. It’s essential to trust and respect potential investors before signing term sheets. Sharing a common vision of the company’s future (as well as the investors’ exit) will help reduce conflict as the company matures.


LOHAS Venture Fair Not to be Missed
!

For LOHAS oriented companies or values based investors please check out the LOHAS Venture Fair. This event is developed from a partnership between Investor's Circle and LOHAS and is a great opportunity for you to interface with likeminded prospects and peers. It also coincides with the LOHAS Forum June 23-25th.

 

What does Green Language look like Today?

Tuesday, February 9, 2010 by Ted Ning


Authored by The SOAP Group

Language shapes the way we think and determines what we can think about,” said linguist Benjamin Whorf. Since advertising is the most read text in our culture (we’re hit with between 300 and 3,000 messages each day), the role that advertising’s language plays in shaping thinking about sustainability should not be ignored.

To look at this issue in a bit more depth, we surveyed 100 green print advertisements from both mainstream and
green-minded publications. The ads were for a variety of goods and services, including building products, food and beverages, automobiles, airlines, investing, electronics, detergents, pet food, and cosmetics among others.

Understanding the most commonly used green words of today, reveals insight into the communications trends of tomorrow. As a marketer, understanding ubiquity and saturation is one of the first steps in identifying what’s next. It is then important to recognize that the pulse of modern language provides the market advantage of differentiation.

Emotion vs. Science
The advertising survey bisected operative words (headlines and positioning content in copy) and word families (e.g.,
carbon, CO2, and carbon offset were grouped as one set) into Emotive (“change,” “progress,” “clean”) and Scientific (“carbon,” ”planet,” ”hybrid”) categories. Hyphenated words, like ”eco-friendly,” were considered emotive. We also looked at language intent: Was the phrase intended to be emotional or scientific? For example, in nearly all cases “green” was used emotionally or aspirationally, not scientifically.

At this primary grouping, science-derived words were used 168 times as opposed to emotional words at 116. This
represents marketers’ awareness that prevailing consumers are looking for factual data when making purchases in green contexts. That said, most of the science was fairly vapid, relying more on the language of science than on science itself. This means that science, as a brand differentiator, still has unclaimed potential.

More interesting, however, is the emotive side of the ledger. “Green” was toppled as the leading operative word in its
own category of goods and services. “Less” is today’s operative. “Less” represented the most common linguistic turn
of phrase, showing up 28 times in 100  ads (“green” appeared 23 times). The phrase “go green” is all but abandoned
today. “Green” and its variations are telltales of greenwashing. Still, it seems that it has been relegated to serving as a shortcut to define the category, but doesn’t offer much depth beyond that.

Is “Less” the New “Green”?
Maybe. Green marketing often takes the shape of its current cultural condition. When energy (fuel, etc.) prices were
painfully inflated, marketing language (and solutions) turned to saving money and distance efficiency. Way back in
2008, one could be green and indulge at the same time, as long as they drove a hybrid to get there. Today, energy prices have fallen, but less immediately controllable economic hardships have replaced them. The current condition is one of anti-overindulgence, simplicity (noted eight times, it is a form of “less,” but not classified as such in our survey), and doing more with well...less. This is a cultural condition of the economic turn. “Less” is on the lips of CEOs, school administrators, advertising sales teams, governors, and kitchen-table budgeters. And, apparently, green marketers have picked up on this fact. No surprise there. But, “less” in these ads is a factor of economics, not life philosophy. This was the case with “green” too, where it was arguably more about social status and trend than a
change in values.

It’s odd how a phrase intrinsically linked to anti-consumption can become the most popular word in marketing goods and services. Like “green,” this is the co-opting of the LOHAS language by the mainstream all over again.

But advertising has never been accused of being “accurate” language, so in a sense what’s odd is that we expect authenticity to play a role in it at all. Or at the very least, we should.

Most advertising is based on use of the superlative. “Very” lost its meaning through overuse, so we installed “very, very” into the language set. “Yes” has had to become “absolutely.” “Green” is currently interviewing for hyper-replacements, both in terms of movement and language. This is evolutionary language theory at its quickest. It will be interesting to watch “less” become a superlative. And, of course, we await lesswashing — where the consumption of less is a contrived illusion.

Encouraging consumers to consume less is an emerging marketing strategy. Engineering ways for them to have the same reward consumption offers is a sustainability strategy.

Author Edward Abbey said, “Growth for the sake of growth is the ideology of the cancer cell.” In more theoretic terms, according to ecopedagogy, sustainability is not being realized because it represents the antithesis to the political, economic, and cultural status quo of the powerful forces needed to fuel growth. The ‘less’ backlash is a response to this and marks a real milestone along the pathway to culture change and LOHAS ubiquity.

What is a LOHAS Ad?
What’s the difference between a mainstream ad and a LOHAS ad? Maybe a LOHAS ad is a gadfly. A LOHAS ad may be one that challenges the status quo of not just health and sustainability, but of advertising itself. Maybe LOHAS advertising needs to do more than promote and educate. On some level, LOHAS ads have both an opportunity to simultaneously inspire and make a mess.

Shakespeare said, “Past is prologue.” So how can we use these linguistic trends as an opportunity to create more authentic culture change stemming from the LOHAS business community and emerge into the mainstream (as opposed to mainstream marketing to LOHAS)? There are some new frontiers that are ready for marketing to embrace.
• Local as the new niche market (“The 100 Mile Diet” goes mainstream)
• Overwhelming positivity
• Authentic “me” instead of purchased badges of community
• The acquisition of experience over products
• Activist-based marketing (not guerilla, rather marketing that has a purpose beyond marketing)

Advertisements tend to signify cultural trends. They enforce classic structures of economy and politics. But they can also subvert the same. We are advocating for LOHAS marketers to push harder now more than ever to promote their goods and services through the principles and ideals of the LOHAS marketplace, not just the associated signs and signifiers. Move beyond language, go deeper into the trends, and create new levels of business consumer dialogue and engagement.

In 1968, when Garrett Hardin wrote “The Tragedy of the Commons” he was describing a particular dilemma in which individuals acting independently in their own self-interest ultimately destroy a shared resource—even where it’s clear that it is not in anyone’s long-term interest for this to happen. Today’s green ads may be serving the interest in meeting a company’s quarterly bottom line, but few are acting in the interest of communal sustainability.

Unfortunately, advertising shapes American culture; it shapes our image of ourselves. But it is through deconstructing the codes of advertising that we can begin to learn the limits of these codes. And, in turn, improve the odds of sustainability, social equity, and enduring value.

Is the Green MBA a Myth?

Tuesday, February 9, 2010 by Ted Ning
At a time when the U.S. economy is facing its biggest crisis in decades, clean technology offers the promise to be the next big engine of business and economic growth.

What is clean tech? At Clean Edge, a firm that covers the clean technology market, our definition refers to any product, service, or process that delivers value using limited or zero nonrenewable resources, and/or creates significantly less waste than conventional offerings. Clean technology comprises a diverse range of products and services—from solar power systems to hybrid electric vehicles—that:

• Harness renewable materials and energy sources or reduce the use of natural resources by using them more efficiently and productively
• Cut or eliminate pollution and toxic wastes
• Deliver equal or superior performance compared with conventional offerings

Clean tech covers four main sectors: energy, transportation, water, and materials. It includes relatively well-known technologies such as solar photovoltaic (PV) and concentrated solar power (CSP), wind energy, biofuels, advanced lithiumion batteries, and large-scale reverse-osmosis water desalination. It also includes emerging technologies such as wave and tidal power, silicon-based fuel cells, distributed hydrogen generation, plug-in hybrid and all-electric vehicles, and nanotechnology-based materials.

So how did clean tech go from the stuff of back-to-the-earth utopian dreams to its current revolution among the inner circles of corporate boardrooms, Wall Street trading floors, and government offices around the globe?

We’ve identified six major forces—what we call the six Cs—that are pushing clean tech into the mainstream and driving the rapid growth, expansion, and economic necessity of clean tech across the globe: climate, costs, capital, competition, China, and consumers.

Costs. Perhaps the most powerful force driving today’s clean-tech growth is simple economics. As a medium to longterm trend, clean-energy costs are falling as the costs of fossil fuel energy, despite the drop in the price of oil in the second half of 2008, are going up. The future of clean tech is going to be, in many ways, about scaling up manufacturing and driving down costs. Recent advances in core technology and manufacturing processes have significantly improved performance, reliability, scalability, and cost of clean energy sources, primarily solar and
wind.

By contrast, in conventional fossil-fuel power such as coal and natural gas (which together provide approximately 60% of the world’s electricity), the generating technologies are mature, stable, and already widely deployed—so their technology costs are relatively steady and predictable. What determines the price of conventional power is the cost of fuel—and the price of fossil fuels, while certainly experiencing directional gyrations as we’ve seen in the past year, has nearly always moved in the same general direction over the long term: up.

With solar, wind, small-scale hydroelectric, geothermal, and even the nascent technology of ocean tide and wave generated electricity, the price-determining formula is just the opposite. There is no cost of “fuel”—the sun, the breeze, the heat of the earth, the tides and waves arrive free of charge daily.

Climate. Alarm is growing about the climate-change consequences caused by our continued dependence on carbon-intensive, greenhouse gas (GHG)–emitting energy and transportation sources, and manufacturing processes. The United Nations’ Intergovernmental Panel on Climate Change warned in 2007 that global GHG emissions must be in decline by 2015 to avert disastrous “runaway” climate change. And with insurance giants such as Swiss Re and Munich Re thinking twice about climate impact on the issuance of their policies (try getting an insurance policy for an oil rig in the Gulf of Mexico), the climate issue is coming front and center for companies, governments, and individuals.

This is driving clean-tech investment and deployment and becoming an increasingly important factor in assessing
investment risk factors. Global companies from DuPont to Wal-Mart are investing heavily to promote energy efficiency and clean tech in their operations to reduce their GHG contributions. “As an investor, do you believe that we’re going to take climate change seriously in terms of legislation?” asks Mark Trexler, president of Trexler Climate + Energy Services, a firm in Portland, Oregon, that advises companies and utilities on carbon-reduction strategies. “To completely ignore it, in terms of investment decisions, would be a terrible thing.”

Consumers. Rising energy prices, polluted ecosystems, and growing awareness of climate change and the geopolitical costs associated with fossil fuels are driving a shift in consumer attitudes and consumer demand for clean-tech products and services. That’s forcing companies that sell to consumers – from appliance makers to auto manufacturers to Wal-Mart – to produce and sell cleaner, more efficient products and to market them aggressively.

Who is driving this demand and growth, which is also evidenced by the steady expansion of the LOHAS demographic sector? Both early adopters, who installed the first solar PV system in their neighborhood or purchased an early-model Toyota Prius, and mainstream customers, who are installing high-efficiency water heaters, buying higher-mileage cars, insulating their homes with recycled denim, and demanding efficient EnergyStar appliances and windows.

These 21st century consumer preferences don’t seem to be slowed by the dramatic drop in gasoline prices that began in the fall of 2008. A Consumer Federation of America survey in February 2009 found that 76 percent of U.S. adults were still concerned about high gas prices and an equal number worried about American dependence on oil from the Middle East.

Capital. An unprecedented influx of capital is changing the clean-tech landscape, with billions of dollars, euros, yen, and yuan pouring in from a myriad of public and private sector sources. Since the 1970s, investments in clean technology have moved from primarily government research and development (R&D) projects to major multinationals, well-heeled venture capitalists, and savvy individual investors.

General Electric, the world’s largest diversified manufacturer, plans to invest up to $1.5 billion a year in clean-tech R&D by 2010 as part of its “Ecomagination” business strategy. Spain-based energy giants Iberdrola and Acciona are both poised to spend billions of dollars building out their clean-energy portfolios, primarily wind power, over the coming years. Toyota reportedly spends some $8 billion annually in R&D, much of it for hybrid and fuel-cell development. Sanyo, the fourth largest solar cell manufacturer in the world behind Sharp, Q-Cells, and Kyocera, has said it will invest $350 million over 5 years to expand its solar operations as well.

The trend is significant. In 2008, despite its fourth-quarter downturn, venture capital investments in clean tech (in North America, Europe, China, and India) grew 38% to $8.4 billion, according to research firm The Cleantech Group in San Francisco.

China. Clean tech is being driven by the inexorable demands being placed on the earth not only by mature economies but also China, India, Brazil, Russia, and other rapidly developing nations. Their expanding energy needs are driving major growth in clean-energy, transportation, building, and water-delivery technologies.

China is emblematic of the resource-constraint issues facing our planet; China will not be able to sustain its growth if it doesn’t widely embrace clean technology. The Chinese government is starting to understand this and in 2006 committed to investing more than $200 billion over 15 years to meet nationally mandated targets for clean energy. China is planning to have 60 gigawatts of renewable energy (not including large hydroelectric) by 2010 and 120 GW by 2020.

Competition. This refers to competition among cities, regions, and nations to attract and grow clean tech as a core industry for job creation and economic development. Thrust into the national spotlight in the past year with the focus on “green jobs” as a major component of U.S. economic recovery, clean tech as a development tool is gaining significant traction. Whether promoting the retraining of laid-off steelworkers to build wind turbines or employing inner-city job seekers to weatherize homes in their neighborhoods, more governments are seeking (and seeing) the benefits of clean tech-focused development efforts.

These powerful global forces—the six Cs—have put clean tech onto center stage and awakened a diverse range of stakeholders across the world. From Beijing to Berlin, from San Francisco to Bangalore, the clean tech revolution is well under way. It will determine which regions lead and prosper and which regions are left drowning in their own effluents, choking on their own emissions, and struggling to compete in a world that is leaner, greener, and less reliant on fossil fuels.

We believe the choice for investors, companies, governments, and individuals is simple, especially as we seek a dramatic transition out of our current financial crisis. Be part of one of the greatest business and economic shifts in recorded human history, or become extinct like the dinosaurs whose fossils fueled the last great industrial revolution.