A New Playing Field

Green is everywhere today, but in many cases buried from vast majority of consumers. As more products hit the market the vast majority of them will never reach even a small group of consumers. As more and more large CPG companies get into the green business by acquiring brands or introducing their own, the playing field changes.

Natural used to be a low cost of entry to introduce anything under the sun. Many small entrepreneurs did well in the early days of the natural movement and many think it is the same today. But, the game has changed.

Is retail the best distribution option for these brands today? What chance does any new brand have for widespread distribution in the natural or supermarket channel? Every natural or organic brand introduced today looks to the conventional supermarket channel for growth. When a category like natural household cleaning has 441 brands reporting sales in the industry; the top 10 doing 85% of the sales and any given grocery retailer only carrying 3 brands (one their Private Label), what chance does any new entry have?

This scenario plays out in every category in the natural industry today. Any new product today, if not heavily funded by a major brand, will have less time than Conan O’Brien on The Tonight Show if any at all.

What do you think? Can a small brand survive today? Can a startup company sustain itself in the new economy?

Looking forward to hearing from you.

Stewardship and Activism

There is ample discussion today of doing the right thing. Whether it is volunteering in your community, being a steward of the environment in your life or being an activist for a cause, there is no shortage of rhetoric. But when it comes to matters that impact our life to the greatest degree every day, most don’t even notice what’s happening around them.

In just over 2 weeks there will be a primary election for many of the constitutional offices of Illinois, Cook County Board President and US Senate (President Obama’s former seat) to name just some of the races. But reporters for area news organizations are saying that many people in the state are unaware of the races. For those of you reading this outside of Illinois, this is the state that has a Governor who was impeached and faces federal charges of trying to sell Barack Obama’s Senate seat. We now face the greatest fiscal crisis in the states history. And people don’t know there is a primary election!

What does this have to do with natural products or the natural industry? Nothing really but I draw a comparison to the passion that people have for natural products and the relative disdain some have for voting. Where is the activism to exercise your right to vote? Everyone has an excuse for why they don’t vote, but they are selling themselves short.

I pledge that we all become stewards of our government in 2010. We have too much as stake for what will be left to our children. We owe it to them. Our children will bear the cost tomorrow for the government mismanagement of today. If you vote for nothing else, vote for them. http://elections.chicagotribune.com/

Dow Chemical and dioxins: Cleanup deal's outcome could affect future initiatives -- chicagotribune.com

Dow Chemical and dioxins: Cleanup deal's outcome could affect future initiatives -- chicagotribune.com

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Nielsen | A Social Media

Nielsen | A Social Media "How To" for Retailers

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What are today's teenagers going to tell us about social media in the next 5-10 years? They appear to be more mobile, preferring text messaging (overshelmingly) to Twitter but still spend a lot of time in front of the TV.

Is the Whole Foods Model Dead?

A business associate in the green industry recently suggested to me that the Whole Foods model may be dead or on life support due to market forces in the industry related to the economy. It has been reported that the recent economic conditions have created a generation of frugal consumers who have learned to find the best value for their dollar. Value is a relative term and one that has a point of diminishing returns based on price. Has the price/value hit that point for Whole Foods? Have consumers become so frugal that they now avoid high end retailers like Whole Foods and choose to avoid the extra trip and get their green products at a conventional supermarket where they continue to shop anyway?

Sales performance at Whole Foods has consistently under-performed from year ago throughout 2009 which would indicate that some assumptions may be true. With green products available almost anywhere today, the choices for consumers are better and the competition for Whole Foods greater. Whole Foods had a solid lock on the natural business for many years. The John Mackey vision was ballyhooed throughout the grocery industry and countless retailers tried to replicate the “experience”, most could not. Now the bloom may be off the rose for Whole Foods.

With more green products being owned by major manufacturers like Kellogg’s, General Mills, Coca-Cola and Clorox has the industry been greenwashed into just another category? Kashi, a natural brand pioneer is now in every cereal set across the U.S. due to Kellogg’s clout and Clorox has become a mainstream natural cleaning brand with Greenworks much the same way. Has the Whole Foods model dying because it is being replaced?

Whether you call if green, natural or organic, the movement is here to stay and from what I know about the consumers who drive this industry, they will find a way to keep the products they desire accessible. What I see as the driving force for natural and organic products is the health and wellness attributes that they provide the consumer who is seeking to better their life. Whole Foods has long considered the consumer who has experienced a “life changing event” (Illness, birth of a child, etc.) as the future consumer base of the retailer.

The answers to these questions will be wide and varied and I welcome your thoughts on the subject.

Air pollution lawsuit: Federal and state lawyers sue Midwest Generation over Illinois power plant emissions -- chicagotribune.com

Air pollution lawsuit: Federal and state lawyers sue Midwest Generation over Illinois power plant emissions -- chicagotribune.com

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Put me in coach….

I had fallen away from most sports in my life for many years including my boyhood favorite, baseball, because of a busy career and a new family. But as the family grew, my love of America’s game was rekindled by what would be the highlight of the last 7 years of my life, Little League baseball.

Youth sports offer parents, family and friends the opportunity to see sports the way they were intended, as a game. But I was fortunate to coach and manage my son’s teams for those years in a community where Positive Coaching was taught to all managers and coaches and parents were there to support the teams, not criticize the volunteers and coaches. I know that it’s not true everywhere and that’s unfortunate.

I was often asked why I devoted the time to coach and manage Little League; my answer was always the same; because it provided the most enjoyment I could ever image and the greatest father-son time I could ever ask for. I would never say that I wasn’t disappointed in a loss, there were many heartbreakers over the years, but I never let it be the meaning of the game. Talking to a group of teary eyed 8 year olds after a last inning loss is one of the toughest conversations you will ever have, but I would do it again for the chance to talk to them again about wining, loosing and sportsmanship. This was likely my son’s last year of organized baseball and therefore the end of my participation and I am generally poignant.

If you truly enjoy a sport, get involved in coaching a youth sport. Teaching a child to love a sport as you did is an enriching experience. Do it for your own child and it’s a win-win.

The season is over for local area Little League baseball but as I think of volunteerism in the future, I am reminded of the eager young faces, the sense of accomplishment from a freshly soiled uniform and the exuberant smile of a first hit.

Put me in coach, I’m ready to play!
http://www.youtube.com/watch?v=7IWRYMoBT68