We human beings have managed, over the relatively short time we’ve been here, to muck things up pretty well, environmentally speaking, and even if you’re among those who don’t believe in global warming, it’s hard to deny that as caretakers of this big rock we all share, we’ve not been the best of stewards.
Consumers are becoming increasingly interested in specialized and diversified products. Because they are looking for increased differentiation in what they purchase, there is no longer a mass market in America. Rather, there are a large number of niche markets that attract different types of individuals based upon their lifestyles and the occasions for product or service usage. Given all of this change, there has been a shift in consumer interest toward companies, brands, products and services that embody values.
– The Hartman Report: A Consumer Perspective on Sustainability, 2003
We human beings have managed, over the relatively short time we’ve been here, to muck things up pretty well, environmentally speaking, and even if you’re among those who don’t believe in global warming, it’s hard to deny that as caretakers of this big rock we all share, we’ve not been the best of stewards. The ecology movement that began in communes, campuses and grass-roots organizations dating back at least as far as the publication of Rachel Carson’s seminal book, “Silent Spring,” has graduated into the mainstream of American life. Who would’ve thought 30 years ago that suburbanites would be dragging bottles and cans out to the curb for recycling, and that decisions made in boardrooms across the country would be based not just on the bottom line but on how those decisions would impact their surroundings? Increasingly, grocery shopping has become more than just about shopping for food. It has become as much of a political act as a practical or a social one, and consumers are faced with an ever-increasing, often dizzying array of terms and concepts every time they reach for an item in the store. Words like organic, fair trade, locally sourced, sustainable, free-range, grass-fed, hormone-free and so on sometimes push shoppers to the brink, and yet at the same time, they are very concerned about the health and well-being of themselves, their families, their communities, and the planet. As Kermit the Frog once so eloquently put it, it’s not easy being green.
Green is the New Black
According to the McGraw Hill Construction’s “SmartMarket Report, 2008,” over $12 billion was spent on “green buildings” in 2008. That figure is expected to rise to $60 billion by 2013. The city of Pasadena in Southern California has passed a law requiring privately owned buildings to achieve LEED certification (Leadership in Energy and Environmental Design, an internationally recognized green building certification system developed by the U.S. Green Building Council) and LEED Silver certification for municipal buildings of 5,000 square feet or more. Boston now requires all buildings greater than 50,000 square feet to meet LEED standards; and in Austin, Texas, sellers of residential, multi-family and community property must submit to a complete energy audit, and make the findings known to any prospective buyer.
The American Chemistry Council, according to John Arango of Alpaytac Marketing Communications and Public Affairs, has set a goal of at least 40 percent recycled material in thin plastic bags by 2015. Of course, that may be a moot point as many states are now taking steps to ban plastic bags altogether.
Mambo Sprouts, a marketing research firm, studied 1,000 natural products consumers and the results showed that nine out of 10 take additional steps to promote family health and wellness, including vitamins, ample amounts of fruits and vegetables, organic foods in general, and they say they will most certainly continue to do so.
In a recent Associated Press (AP) article, it was reported that McDonald’s is investigating how to raise chickens without cramming them into cages, and food giant Wal-Mart has become the largest purveyor of organics, an industry that has grown from a $3.6 billion industry in 1997 to $21 billion today (growing, we might add, at a much quicker pace than conventional grocery sales). Additionally, more and more books and documentaries have come out espousing the benefits of eating simply and organically, benefits for people as well as for the planet. Films like “Food, Inc.” and “Super Size Me,” and books like Michael Pollan’s “The Omnivore’s Dilemma” have brought the debate over how we eat as a nation into the forefront of the minds of people who in some cases haven’t even thought of it before.
So, what does all this mean? Well, for one thing, it means that the Slow/organic/natural/local/sustainable food movement is more than a passing fad. From the organic garden at the White House to the incredible influence and popularity of the Food Network, whose viewership, according to the AP, rose 392 percent from 1999 to 2009, Americans are suddenly inundated with messages about food and healthy eating. It means that your consumers are suddenly a lot more educated about green products, and they will be expecting you to be green as well.
Like Kermit said, however, it’s hard to be green, especially when there are so many conflicting views on what it means to be green, as well as the often confusing and misunderstood terms that have come to define the movement, words like organic, fair trade, local, hormone- and antibiotic-free, health and wellness, simple living, and so on. In many ways — environmentally, socially, economically and in terms of health and well-being — it comes down to one term, sustainability. Perhaps the most extensive study into sustainability is “The Hartman Report on Sustainability,” conducted by The Hartman Group, in which they point out that the term is not yet widely understood by consumers but is, they concede, “a very useful umbrella term given to the current cultural movement toward health, wellness, organics, environmental consciousness, fair trade, simple living, buying locally and many other important issues.”
They also point out that sustainability, at least as it is understood by consumers, is not just about “saving the world,” but a holistic concept that involves the health of individual people, communities, and even the world’s economy. The report shows that between 1997 and 2007, there was “the greatest show of force in the rise of organic foods, and the general cultural shift toward health and wellness.” However, they point out, the primary drivers have not been spiritual concerns for the environment, but instead reactions to events, family and personal health, such as a child being diagnosed with a serious illness.
Also, there has been much conflicting information on health issues over the years, and consumers have been confused. In terms of health and what foods are good for you and which ones should be avoided, what you thought was true yesterday is considered wrong today. Remember when chocolate, nuts, tea and even olive oil where not considered healthy options? Chocolate was thought of only as candy; nuts and olive oil were full of deadly fat; and tea, well, it was considered benign at best, but certainly not in the category of being good for you. Today, research has shown these foods, along with countless others, to be at the very heart of a good, healthy diet.
The Greater Good
“The underlying assumption behind all of these trends is that, if society continues on its current path, systems will break down, resources will become scarce, and public health will be at risk.” (“The Hartman Report on Sustainability”)
There are many Americans, of course, who neither know nor care about the environment or how healthy their food is. They eat what they like and they eat to be full. These people are unlikely to ever be your customers. Among the consumers who do care, the Hartman Report divides them into three categories: periphery, mid-level and core, and the criteria for making purchases is different for each group. For example, the periphery group is all about convenience, price and any personal benefits that can be gleaned from the foods they eat. The mid-level group looks for expert opinions, personal experience and knowledge, both their own and that of the retailer. Core consumers of sustainable goods are those who are interested in the greater good. They see their buying as both a partnership with the manufacturer and a form of “direct democracy” as they vote with their food dollars. Core consumers also demand transparency in their dealings with these manufacturers. They want everything out on the table in terms of how the product is made, where it originates and everything else about the product.
It seems to me that all three of these groups should be your customers. Convenience and price should always be considerations in your merchandising, even if the economy gets back on track the way most people believe it will. The rest can be achieved through product selection, effective and comprehensive signage, ongoing education in the store (of staff as well as customers), vendor participation, and community involvement. In the if-you-stock-it-they-will-come scenario, the report shows some interesting statistics regarding the “sustainables,” consumers in one of the above three categories. The study shows that they are more than twice as likely to think it important to buy environmentally friendly products and are four times as likely to be willing to pay a 10 percent premium for sustainable products. They are also more likely to think it important to buy organic products, although the concept of “organic” is increasingly being supplanted by the concept of “local.”
Fair is Fair
One of the most misunderstood concepts in the general green movement is the idea of “fair trade.” Someone even suggested to me once that it seemed contrary to being an effective buyer. “Why would you go out of your way to pay more for a product, especially one that is essentially a commodity?” Fair trade practices first came into the light, I believe, in the coffee business when progressive purveyors tried to help their suppliers by paying them a better price, a fair price for their product, a move that allowed these farmers to keep doing what they do. It also encourages them not to do other, more destructive things like slash and burn the rain forest.
I took the following information from the TransFair USA Web site, a nonprofit organization and, according to their site, “the only independent , third-party certifier of Fair Trade products in the U.S. and one of 20 members of Fairtrade Labelling Organizations International (FLO). TransFair’s rigorous audit system, which tracks products from farm to finished product, verifies industry compliance with Fair Trade criteria. TransFair allows U.S. companies to display the Fair Trade Certified label on products that meet strict Fair Trade standards.”
According to TransFair USA:
“Fair Trade Certification empowers farmers and farm workers to lift themselves out of poverty by investing in their farms and communities, protecting the environment, and developing the business skills necessary to compete in the global marketplace.
Fair Trade is much more than a fair price! Fair Trade principles include:
• Fair price: Democratically organized farmer groups receive a guaranteed minimum floor price and an additional premium for certified organic products. Farmer organizations are also eligible for pre-harvest credit.
• Fair labor conditions: Workers on Fair Trade farms enjoy freedom of association, safe working conditions, and living wages. Forced child labor is strictly prohibited.
• Direct trade: With Fair Trade, importers purchase from Fair Trade producer groups as directly as possible, eliminating unnecessary middlemen and empowering farmers to develop the business capacity necessary to compete in the global marketplace.
• Democratic and transparent organizations: Fair Trade farmers and farm workers decide democratically how to invest Fair Trade revenues.
• Community development: Fair Trade farmers and farm workers invest Fair Trade premiums in social and business development projects like scholarship programs, quality improvement trainings, and organic certification.
• Environmental sustainability: Harmful agrochemicals and GMOs are strictly prohibited in favor of environmentally sustainable farming methods that protect farmers’ health and preserve valuable ecosystems for future generations.
Fair Trade Certification is currently available in the U.S. for coffee, tea and herbs, cocoa and chocolate, fresh fruit, sugar, rice, and vanilla.”
In my mind, the principles of fair trade go hand in hand with the kind of name-protection policies used in the EU for food and drink, which help protect not only the products but also the people who make them. Again, as the study talked about with the core group, the greater good, partnering with the manufacturer, transparency, authenticity, and voting with your food dollar. The fact that Fair Trade products are now being discussed in the mainstream market is a boon for the industry and ultimately for the planet. In any case, there is a growing market for sustainably grown and produced products. Not just in food but all manner of household goods, including cleaning supplies, textiles, paper products, pet foods and supplies, and much more. So, get your green on and take a survey of your store, and assess your own sustainability quotient. A wise person once told me that, in terms of our environment, eternity is a very long time … especially toward the end.
