On green-company buyouts

06 Feb 2008

Got questions about the environment? Ask Umbra.

Dear Umbra,

So glad you were ransomed. (I happily did my bit.) I'm worried that the gentle-on-the-environment start-ups are taking the money and running. First our favorite toothpaste, Tom's of Maine, sold out to Colgate (I think) and now Burt's Bees has become a product line acquired by a bleach company. Where do we turn for sparkling teeth and rosy cheeks?

Irene
Eatonville, Wash.

Dearest Irene,

May I split a few awapuhi-softened hairs with you? Neither Tom's nor Burt's Bees can be characterized as a start-up. Both businesses are well established and worth millions. It's not like they barely got themselves off the ground and then -- suddenly! -- a giant alien came to eat them! They must have known it was coming, and maybe even took pride in bringing a fringe company so far into the mainstream. Also, the former owners of Tom's and Burt's would likely bridle at the thought that they have "taken the money and run." Tom of Tom's and his partner Kate both seem to mean to stay and assist in some kind of transformation at Colgate-Palmolive, or at least stay and keep running a responsible toothpaste subsidiary.

Same great paste, fewer principles?

Photo: iStockphoto

And from what I can tell, the Burt's folks are remaining involved in the cause as well, though in a different way. I read a very interesting article about Burt's Bees' sale to Clorox (not a bleach company but the bleach company) in The New York Times. Basically, Burt had bees, Roxanne made products with the wax, the company got big, Roxanne bought Burt out, they brought in a corporate guy to run the company, now Clorox has purchased Burt's Bees. It sounded like Burt, despite having a fancy house, went back to living in a converted turkey coop because he prefers it (which is the detail that makes it worth telling the story); and Roxanne uses her buyout money to purchase and protect Maine forests. (Well, plus to gad about seeing the world -- I would do it too! What happened to that ransom money?)

L'Oreal bought the Body Shop, General Mills owns Cascadian Farms, Unilever owns Ben & Jerry's, Coke owns Odwalla, Tom's of Maine now belongs to Colgate-Palmolive ... if you're interested, you can look through details of the ownership structure of the organic industry. Riveting reading.

Is corporate involvement in "natural" products bad? The answer isn't cut and dry. In part these smaller brands built consumer loyalty by having a good story, usually a story of naturalness and ecological beneficence coupled with smallness, ruralness, and gumption. The smallness and gumption becomes overtly fake when a small company is devoured by a larger one, but at the point you are eaten by Clorox I'm not sure you can lay claim to small and feisty any longer anyway.

As to the environmental records of the smaller companies, and what will happen in their accession to larger companies, we can probably say it ends up a mixed bag. The larger companies often want to integrate the interesting green aspects of the small, and pledge to keep the green unchanged. I'm sure we're all skeptical about that pledge. When this issue arises, I often think of Gene Kahn. He founded Cascadian Farms, back when he was a '70s back-to-the-lander, and in all the articles I've read about him, he never looks back. First he sold to Welch's, during a time of financial duress, and now Cascadian Farms is part of General Mills. Kahn appears to feel that any successful alternative venture will be absorbed into the mainstream, where it will begin to effect change from within. It's hard to argue against the huge increase in organic acreage. Even industrial organic is far better than conventional industrial.

I feel it may be the same with all these relatively smaller personal-care product companies and food specialty companies. Some of the environmental and social benefits they had worked for may be lost -- or polluted through association with larger companies with egregious environmental and social records -- but on the positive side, their products are distributed widely, and may replace less beneficial products. A type of evolution occurs, and we don't need to see it as a loss on our end.

Ask Umbra continues below

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In the meantime, new actual start-up companies move in to take shelf space at the natural-food store. Often newer companies are striving even harder than the established "alternatives" were to do right by the planet and their workers. Don't despair of finding small companies manufacturing responsible products, is what I mean to say -- there should always be a wave of people getting their foot in the natural-products door. You'll have to ask at your nearest natural grocery about what brand to try next.

If you're still looking for a whole package of economic, environmental, and social justice in your toothpaste, you may just need to switch brands. On the other hand, it's just toothpaste. I'm not sure buying Tom's Cinnamint marks you as a sellout.

Cavity,
Umbra

Yours is to wonder why, hers is to answer (or try). Please send Umbra any nagging question pertaining to the environment -- but first check out her FAQs!

The claims made in this column may not reflect the views of this magazine. Neither the magazine nor the author guarantees that any advice contained in this column is wise or safe. Please use this column at your own risk.

Umbra Fisk is Grist Research Associate II, Hardcover and Periodicals Unit, floors 2B-4B.

Comments: (13 comments)

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small and natural body care

Remember that you may be able to find small and local for some products. For example, I buy soap and lip care from a small local business that started selling at the local farmer's market and now also does mail order (Moon Dance soaps). So keep your eyes open and see what you can find to support your neighbors and cut down on transport-generated carbon.

by triskele at 10:46 AM on 06 Feb 2008

Clorox

Clorox is trying really hard to break into the green market not only with Burt's Bees but with their new product line called Green Works which I think is great, however their other products are not green and in particular the company still uses animal testing on other items. I think its really surreptitious to promote that certain products such as Burt's Bees and Green Works aren't tested on animals and are eco-friendly while many of their others are tested and not green. But if Clorox is going to reach consumers that aren't already aware about environmental issues or who wouldn't otherwise care, then that's great and really important. I myself perfer to go with the smaller, new or local businesses that "are striving even harder than the established "alternatives" were to do right by the planet and their workers."

The wise have always said the same things, and fools, who are the majority have always done just the opposite.-Schopenhauer http://easygreenliving.net

by greenliving at 1:26 PM on 06 Feb 2008

The best way to know what's in your stuff...

is to make it yourself, of course. But I'm sure you knew that already.

by ashbuhbee at 3:13 PM on 06 Feb 2008

Clorox needs to do more...

Clorox is trying to green its image by purchasing Burt's Bees and creating Green Works. But did you know they also own the Brita water filter company in North America? In Europe, Brita cartridges can be recycled in an extensive company take-back program. But Brita North America (Clorox) has no plans for recycling the cartridges here in the states, so we end up tossing a hunk of plastic into the landfill or incinerator each time we need to change the filter.

If you're interested in asking Clorox to create a recycling program for these cartridges, please see my blog posts on the issue. Here's the link where you can read the history on this:

http://www.fakeplasticfish.com/labels/Brita.html

Oh, and if you want to green your toothpaste, consider mixing up your own. I use baking soda mixed with wintergreen essential oil and a tiny bit of stevia powder for taste. (Some people add salt for abrasion and others add vegetable glycerin to make it more like a paste.) Tastes fine, works great, and my dentist is pleased with my teeth.

Beth Terry http://www.fakeplasticfish.com

by Beth Terry at 4:08 PM on 06 Feb 2008

small and natural body care

Thanks Triskele. I agree completely. I too was disappointed at the sell out of both Burt's & Tom's - for me it was kind of like finding out my favorite slippers that were once made in the US are now manufactured in China. Buying local is both better for the planet, and your local economy. I discovered a line of skin care products I like better than Burt's Bees that are made right here in Maine using organically grown ingredients - Aveena made in Rockport Maine. They even let visitors tour their over 2 acres of organic gardens and the owner Deb Soule is often on hand to answer any questions about thier skin care product line and their herbal medicines.

The additional item of concern in the big-fish-eats-smaller-fish buyout of companies is where the products will now be made. If these once domestically made products will now be made overseas, we need to think about the impact of buying personal care products that were shipped across the ocean using much fossil fuel after being manufactured by people making less than adequate wages.

Opt for local. You may just discover a new favorite product.

by J3NN1F3R at 4:29 AM on 07 Feb 2008
[ Parent ]

a business owners' perspective

http://www.honesttea.com/blog/index.php/category/from-set ...

See a related story - from the business owners' perspective - from Seth Goldman and Barry Nalebuff of Honest Beverages regarding the possible sale of their company to Coca-Cola.

by TriciaGray at 6:13 AM on 07 Feb 2008

change is good

I agree 100% with buying local. In my opinion it is the answer to all of these questions.

That being said, I still see this changeover of companies from traditional practices to those that can be considered more sustainable as a fantastic thing. Change is great but does also take time. Standards will have to be set and the best role models can be those that are able to make these changes but also make lots of money at the same time.

http://greenmadesimple.blogspot.com

by luannrudolph at 7:48 AM on 07 Feb 2008

Will no longer be buying Burt's Bees

Thank you for the info. I would like to tell Clorox that I will no longer purchase Burt's Bees products. I cannot support an industry that performs tests on animals for ANY reason, especially cosmetics. It's very sad that ethical companies get greedy and sell-out. You can sugar coat it all you want to, but the fact is that the loyalty and dedication that consumers of these natural products were providing was not good enough for them and they wanted more money.

"For as long as space endures, and for as long as living beings remain, until then may I too abide, to dispel the misery of the world." - Shantideva

by mtvyfan at 8:05 AM on 07 Feb 2008

Re: no longer buying burt's bees

here's a list of companies that still test on animals
http://www.caringconsumer.com/pdfs/companiesDoTest.pdf

BTW some companiion animal food companies also conduct cruel animal testing, isn't that ironic?

The wise have always said the same things, and fools, who are the majority have always done just the opposite.-Schopenhauer http://easygreenliving.net

by greenliving at 1:43 PM on 07 Feb 2008
[ Parent ]

they've already gone to boot!

Burt's Bees products now contain nanotechnology, ugh!

http://www.sciencedaily.com/releases/2007/10/071002163854 ...

by beeswax at 2:52 PM on 07 Feb 2008

Abe, Charlie and The Man

A lobbyist visited Abraham Lincoln one day, so the story goes. When the president was ready for the visitor, a big man with powerful backers, his personal secretary, we'll call him Charlie, let the man in. The lobbyist had a proposition for the president, and as we already know--because we know all about lobbyists--it was dastardly proposition.

Charlie was able to overhear as the voices grew louder. "Three thousand dollars?" asked the lobbyist.

"No sir," replied the president.

"Five thousand then."

"Good day, sir, it is time for you to leave."

"Ten Thousand Dollars!?"

With that, the door to the Oval Office flew open and the president brought the man into the foyer. "Please see this man out, Charlie, right now."

Charlie had not caught the details of the proposal, but he caught the general drift. Later that day, after transcribing a letter for the president, Charlie lingered before leaving.

"Yes, Charlie, what is it?"

"I would just like to say, Mr. President, that I am constantly inspired by your character, by your ability to resist...."

"Do not idolize me, Charlie," interrupted the president, "the man was approaching my price."

Temptation exists. Human frailty exists. We all have a price.

One of the keys, then, is to pay attention to how we build our systems, how we structure rewards, how we define purpose and function.

We have not-for-profit organizations and for-profit businesses. What is the purpose of a for-profit business?

Profit.

We start businesses with the best of intentions. If we are smart and lucky and we persevere, we start to succeed. We do well while doing good. By the time the big man visits us, everything--our friends, the culture, the checkbook balance--everything has reinforced the message that we are a success, that we deserve whatever it is that the big man has to offer. Why? Because we have served our purpose. We have made a profit.

What, now, are we to say to those of us who have done very well while doing good? What are we to say to those of us who have played the game by the rules and played it well? Are we to tell them that their buyout is their sellout?

Nah.

We all have a price.

Instead what if we changed the rules of the game? What if the exclusive purpose of business was not profit? What if the purpose of business was service? What would that game look like?

That game would look like the cooperative business model. And it is a winning game.

Cooperatives are businesses that are owned and controlled by their members. They exist to serve their members' economic interests. While cooperatives are economically self-sustaining and able to turn a profit like any other businesses, their purpose is service, not profit. Since cooperatives are democratically controlled by their members on the basis of one member, one vote, they are seldom bought out. Members equitably share in business proceeds with no one member benefiting vastly beyond the others, hence cooperatives seldom sellout.

We could change the rules of the game in other ways as well. We could begin to expect companies to internalize costs. We could have our elected leaders step up to the plate. There are many bright people out there with many good ideas, Paul Hawken, Bill McKibben and Robert Reich to name only a few.

It wasn't Abe Lincoln's ability to resist temptation that saved him. And that is not what stirs us about the story. He was human and he knew it. He did not fall to hubris. And that ironically is worth idolizing.

Charlie got it right after all.

Rick Riehle

by rriehle at 1:51 AM on 08 Feb 2008

Sad, sad

I am certainly not anti-corporation or anti-profit; however, the reason I supported these companies was their naturalness and the integrity of the companies (trying to let my dollars count socially). These companies (Clorox, Unilever, Colgate, etc) are not going to change internally. They will not stop animal testing because it's cheaper than the alternative, they are selling some green products because they see the market. I don't begrudge Burt and Tom their money, I just won't be supporting these products anymore.

tammyc

by tammychabria at 2:56 PM on 08 Feb 2008

This is why I use Shaklee at home...

I use all of the Shaklee products at home! All-natural earth-friendly nutrition, personal and home care products. (Toothpaste too!) The company has been around for over 50 years and was green before green was cool. In 2000, Shaklee was the first company in the world to be certified Climate Neutral and totally offset its CO2 emissions, resulting in a net zero impact on the environment. Cool, eh?

You can learn more about the products and the company's environmental initiatives here: www.shaklee.net/tlfuller

Disclaimer: Yes, I am a Shaklee distributor. I have a different day job, but love being part of this company and helping people create healthier lives.

I'd like to see Grist include Shaklee in some of its product reviews and research. Thanks!

~ Terri

by mizberri at 6:12 AM on 12 Feb 2008

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On green-company buyouts