Run Greener
Shoppers are more concerned than ever about the sustainability of the products they purchase, wanting to know where the products are sourced, how responsibly they’re manufactured, and what other ways their production and purchase benefit the environment and communities both local and afar.
However, retailers new to the “green” game might not know where to begin when looking to enhance sustainability with their store brand products. Perhaps the best place to begin is with the manufacturer.
Partner for success
In their quest to make their store brand program greener, retailers first must identify suppliers dedicated to sustainable practices, says Dan Kelly, vice president of sales for Tracy, Calif.-based Musco Family Olive Co.
“Retailers should look to how a product is made [through] every step of the supply chain. They should ask their suppliers about how they are creating a chain of sustainability,” he explains.
Retailers also should learn about what matters to their shoppers when it comes to sustainability.
“The retailer and the manufacturer could … survey their customer base to determine which sustainability factors would resonate most,” says Mark Rossolo, director of public affairs at UL Environment, Marietta, Ga.
Retailers have many options for making their store brand operations greener. Among them, they could encourage their suppliers to use the lowest tier of processing, says Alexander Gillett, CEO of HowGood, New York. For example, if a retailer is sourcing beans, it could sell them both dry and canned, but with only heat and/or salt used in preservation.
“Less processing means less energy,” he says. “Use the organic formulation in your store brand conventional ready-to-eat foods, and then market the lack of preservatives used. This can keep your costs and your shoppers’ costs down while offering the simple, affordable and most sustainable option in each marginal segment.”
In the paper products category, Richard Vergara, president of Orlando, Fla.-based Ampack Corp., says national brand manufacturers continue to reduce the sheet count of their goods to offset the constant increases in energy and transportation costs. However, doing so increases the amount of carbon dioxide emissions during distribution, as manufacturers are transporting fewer packages per trip.
“The opportunity that [exists] for store brands is to increase sheet count in order to keep the freight cost lower per unit of paper, adding a sustainable value to their brands,” he says.
As for materials in the paper products category, he points to bathroom tissue made from 100 percent eucalyptus, a rapidly renewable resource, as a greener option for shoppers. His company produces such paper.
Turning to the prepared foods department, retailers that make products on-site should consider reducing their water usage, says Jean Calleja, co-owner of The Eco Laundry Co., New York. In their kitchens, retailers could use low-flow aerators on their sinks and energy-saving dishwashers.
But perhaps the most important thing retailers need to do is to “walk the walk” overall and operate sustainably in their day-to-day operations — even in areas not directly related to store brands. Rossolo recommends that companies focus on water use, energy use, waste reduction and the use of low-emitting products (paints, adhesives, flooring, etc.) and green cleaning products in facilities and stores.
Set the right green goals
It’s critical, though, that retailers and their manufacturing partners remember that “many shades of green” exist, says Larry Plesent, founder, formulator and CEO of Vermont Soap, Middlebury, Vt. A green point that’s critical to one consumer might not be so critical to another.
“For example … mineral colors are greener than coal tar dyes, but plant colors are greener by far,” he says. “Buying local and using local labor and materials is green. But so is utilizing women’s co-ops from far away in less-developed areas.”
Most store brand suppliers might claim to be or believe they are green, but their concept of what’s green might not be shared by consumers. As a result, a retailer’s efforts to brand products as “green” could fail miserably. Plesent recommends that retailers take the “thousand points of green” approach to sustainable store brands: Try to hit more than one green point at a time. His company does this with the shea butter it imports. The butter is made from 100 percent renewable plant-based resources; it’s sourced from local women’s co-ops that deliver the money directly into the hands of the women doing the work; and a portion of every purchase goes to support endangered pygmy hippos in West Africa.
And either hit those green goals with force — or don’t bother at all.
“Light-green marketing claims start to sound more like greenwashing than legitimate claims from people who care,” Plesent notes. “Putting petroleum jelly into recycled packaging won’t cut it. But a vegetable oil skin jelly with minimum ingredients, all plant-based, and a 100 percent recycled package deliver a serious green message that you care enough to try.”
Once sustainability goals are developed, retailers should make sure they are clearly communicated with suppliers, adds Mark Russell, director of business development at West Liberty Foods, West Liberty, Iowa.
Third-party certification
It’s also critical for retailers to insist that their suppliers obtain third-party certification or validation regarding any environmental- or sustainability-related claims made on packaging, Rossolo states. Not only does certification enhance their brand’s message and credibility, but it also protects both the manufacturer’s and the retailer’s reputations.
“It’s important to avoid partnering with companies who aren’t willing to provide source information for the ingredients that make up the products they sell,” says Hans Theyer, executive director of Washington, D.C.-based Fairtrade America, which regulates and verifies the way suppliers meet certain standards, supporting farmers facing economic, environmental and social challenges to strengthen their livelihoods and contribute to a more sustainable world.
Fairtrade works with retailers to help them source Fairtrade-certified products in their supply chains, Theyer notes. By working with suppliers that are Fairtrade-certified, retailers have the opportunity to communicate how their own brands are contributing to environmental sustainability and fair trade conditions for farmers in developing countries.
Another organization dedicated to helping suppliers source more ethically and helping retailers to partner with those suppliers is the Washington, D.C.-based Marine Stewardship Council (MSC). Michael Griff, MSC’s commercial manager, Americas, recommends that retailers work with MSC-certified fisheries or suppliers working with these fisheries to ensure the store brand seafood products they sell are sustainable and wild-caught.
“As part of the MSC program, fisheries from around the world voluntarily choose to be assessed against the MSC’s rigorous environmental standard, [which] ensures the fish stocks are healthy; the impact of fishing on the marine ecosystem is minimal; and the fishery is well-managed,” he says. “If a company achieves MSC certification, they are then eligible to display the MSC eco-label on their products.”
Additionally, the Forest Stewardship Council (FSC), headquartered in Bonn, Germany, promotes responsible management of the world’s forests and works with retailers to help them develop sustainable sourcing programs. Marcelle Peuckert, director, business development for FSC, notes that the council can provide support and tools on various levels to help retailers communicate their sustainable sourcing goals related to FSC certification.
“FSC is a global organization with over 43 network partner representatives who are capacitated to provide guidance and collaborate with the retailer in arranging for educational sessions, conferences and workshops for suppliers, and relevant documentation [to encourage] suppliers to promote responsible sourcing through their own supply chains,” she says.
And the Rainforest Alliance — an organization committed to conserving rainforests and their biodiversity — works with retailers through its Smart Source program to develop a purchasing policy based on what’s allowed and what’s not allowed from a sustainability perspective, says Mark Comolli, director, markets for the New York-based alliance. It also trains private brand buyers and their suppliers on what it takes to meet that corporate policy.
Griff notes that working with third-party certification organizations also saves time when retailers are developing their own certification programs.
“Retailers should think carefully before opting to create their own certification or eco-label program because it can be costly, time-consuming and in the end may not meet best practices for a credible standard,” he offers.
And whatever the product is in the end cost of development always should be taken into consideration says Dr Luigi Torre, marketing manager with Cassina de’ Pecchi, Italy-based ProfiMed.
“The green product should not cost more than the standard product,” he states. “Retailers should work together [with] suppliers to find the most cost-effective way to produce and distribute a green product.”
Get the green message out
Retailer and supplier collaboration in the name of sustainability doesn’t end after development and manufacturing. The next step, Kelly explains, is to work with suppliers to develop a method of communicating the green attributes and benefits that is meaningful, easy to understand and shareable. The message should then be transitioned to the consumer on all interactive platforms: store websites, social media and newsletters, product packaging, advertising and point of sale.
At point of sale, retailers should place images of the products’ green certification logos and offer a short explanation of each one’s benefits, Rossolo says. They also should coordinate with suppliers so that relevant, meaningful sustainability messaging and certification marks are represented and echoed throughout the store.
Additionally, Griff recommends publishing the sustainable procurement policy for shoppers to view.
And make sure materials communicate that the retailer has vetted the product and its manufacturer for verifiable sustainability, Kelly recommends.
Events, too, are critical in getting the green message across. Theyer notes that World Fair Trade Day in May and Fair Trade Month in October are two “great times” to communicate a combined message of support for environmental and community sustainability.
“Fair Trade America provides retailers with stories of the impact their Fairtrade brands have for farmers and the environment,” he says. “We also work with participating retailers to develop point-of-sale materials, customer giveaway items and social media content that help tell the story of store brands’ positive impact on the lives and environmental sustainability in communities they source from.”
And always remember to be honest.
Don’t “fake it,” says Steve Berry, founder of Auburn Hills, Mich.-based Greenblendz Inc. “Greenwashing has the opposite effect.”
It’s critical, though, that retailers and their manufacturing partners remember that “many shades of green” exist. … A green point that’s critical to one consumer might not be so critical to another.