Organic produce production, sales down

The other night in the grocery store, I heard no less that a half a dozen people on their cell phones talking to other people (at home?) asking whether to buy this that based on price. And the differences were usually well less than a dollar. Sometimes, I watched them put down both options and walk away.

Times are tough. The recession/depression has people watching every dollar. And one area especially hard hit is organic produce and organic food products.

Michael Smith, blogger at Green (Living) Review, was discussing the fact that sales of organic produce and other organic foods are dropping. Many farmers, he reports, are returning to "cheaper" standard production methods. Consumers, when faced with two cans of beans or bunches of grapes, are opting for the "regular" version over the double-the-price organic one.

It's not that we don't want organics. We all know they're healthier. But we just can't pay the premiums growers and retailers are demanding for that often ambiguous organic label.

Those of you who have been reading this blog for awhile will remember that I spent a few posts talking about this very issue. Green companies pricing themselves right out of the marketplace. I was talking about t-shirts, notebooks and baby blankets, but the concept is the same.

If the current economic trend continues, will organic food continue to grace our supermarket shelves in large quantities? Will producers and marketers see the writing on the wall (or on the balance sheet) and work to bring prices in line? Or are the days of organics everywhere numbered?

(Image from Tree Hugger)

Great big green ideas in the building industry waning?

Construction industry stakeholders are increasingly recognizing green building capabilities as “good”—and being a necessary part of a firm’s best practices, ending the view of green building as a niche sector, according to FMI’s 2008 U.S. Construction Overview

According to the Overview, green nonresidential construction put in place was $13.4 billion in 2006, and by 2008 $21.2 billion of all new nonresidential construction will employ the use of green building principles. The growth in green construction has created a shift in perception among owners and the architectural and engineering communities. Construction industry stakeholders have embraced the green movement and sustainable design for its energy savings, worker productivity increases and positive public perception, the report states.

In 2008, the three largest segments for nonresidential construction green building—office, education and health care—will account for more than 80 percent of total nonresidential green construction. Other segments such as lodging and commercial are also experiencing green construction growth, with a 20 percent gain expected from 2007 to 2008.

...from FacilitiesNet.com

That article was from January of 2008...in a search today on the tern "green construction industry" that was the most recent result. Most of the content was from 2007 or even 2006. Before the recession was in full swing. Before the housing market tanked.

So where are they now? Is construction still moving towards green? Or has green given way to the red ink that fills the account books of construction companies? And if the green has stopped flowing, will it pick up again as the economy recovers? Your thought?

Part two of greener can be cheaper

Co-op for raw materials

One of the biggest justifications for the higher cost of green products is the higher cost of organic or otherwise green materials.

One of the reasons for this discrepancy between the costs of standard and green materials is something called "economies of scale," a term that basically means that the more you use or make or grow or create, the cheaper it is per element.

The green world is no exception. But manufacturers seem to be forgetting this. Or ignoring it. Or perhaps just acting as though it doesn't apply to their product.

And that can be deadly to green businesses at all levels. Here's an example:

When a company decides to manufacture notebooks with recycled paper, they need to order the paper. Most green products have a limited run (more about why in a second.) So the company orders X reams of recycled paper, makes the notebooks. A price is set, based upon the materials and the perceived value of a green product at wholesale.

A wholesaler or a retail store gets the notebooks, and marks them up again to cover both the cost and the value-added of a green product.

They may also add in a factor to cover the cost of expected unsold product because of the higher sales price of green items. After all, they cost a lot more so people buy a lot less. That was the assumption from the start, when the run size was determined and the prices were set at each stage.

The problem is, that assumption is killing green products and green businesses!!

Let's start over.

The company who wants to make green notebooks finds other companies who are making green paper products. Together, these companies order a significantly larger amount of recycled paper. The paper manufacturer gives them a better price because it's such a large order(economies of scale).

The materials costs are now lower, so the price can be set lower. If the order for paper was large enough, it might be the same as or even lower than standard runs.

Now the notebooks go to the wholesaler or retailer. And because of the perceived value to customers and the lower wholesale price, they order many more. They may get an even better price. The cost to them is the same as a standard notebook, or at least close. Again, economies of scale.

A mark-up to cover anticipated unsold items isn't needed, because these notebooks cost the same as standard ones AND they have the appeal of being green. Easier to promote!

So now the price that the consumer sees is about the same as the regular notebook AND they have a good feeling, too. More notebooks sell, more are ordered and the cycle is in place.

Unless someone gets greedy and forgets that short-term gains equal long term losses, the notebooks sell, the costs remain low and the earth benefits. And we benefit.

For less.

Developing new green products

Just because a product is green, doesn't mean it's going to be in demand.

This might seem like a serious "Well duh" moment...but the basics of product development seem to have slipped out the window when it comes to green products and services. Instead of looking at what people want, identifying an unmet need or refining an existing in-demand product to make it greener and better, there has been a headlong leap into Never-Never Land where just because it's green, it should be made and by the way, money is no object. For potential buyers, I mean.

The result has been a glut of poorly thought out, overpriced products that quickly move from the feature shelves to the clearance bin. Some examples I've seen recently include:

Recycled paper notebooks directed at kids priced at $8.99 each, displayed within a foot or two of shelf after shelf of regular notebooks selling for less than a dollar each. To make matters worse, the recycled ones offered covers in shades of brown and subdued earth tones. The regular ones featured today's most popular movie, TV, cartoon and music images. Needless to say, three weeks later the recycled notebooks sat alone in a clearance bin with a still overly-hopeful $4.99 price tag.

Organic cotton t-shirts in a local discount chain store were featured at "only" $24.99. For a t-shirt. At a discount store. The non-organic counterparts sat only inches away at $6.99 each. And again, the images on the recycled ones were self-consciously "earthy", while the standard fare featured pithy sayings and fun popular culture images. Again, the former soon filled the clearance racks.

So what's going on here? What mistakes are being made?

1) The real focus in these products isn't on BEING green, but on looking green. Never mind that recycled paper could be used in notebooks that feature bright colors and popular characters. Or that t-shirts could be made of organic cotton and offer pithy sayings instead of "Look at me, I'm green" self-congratulatory announcements. These products aren't meeting a need -- they're attempting to use ordinary objects as political statements. Is that what consumers want? Apparently not!

2) The price points are out of line. People looking for green products, as well as those who will choose greener ones given equal choices, may be willing to pay a small premium for green. But when the green version is two, three or even four times as much as standard counterparts, the sell becomes difficult if not impossible. The cost/benefit ratio is just out of line, especially in a tight economy.

3) Little or no effort has been spent to research the realities of green shoppers. If any ordinary product was released with zero research on the willingness of potential shoppers to hand over their hard-earned cash in exchange for a product, the company making such a poor business decision would be ridiculed. Instead, certain so-called green manufacturers are lambasting the consumer for a failure to buy! And anti-green factions are lapping up the weak sales as "proof" that green is just a fad. Meanwhile, the consumer searches in vain for affordable, quality products that use a bit less, pollute a bit less, reuse a bit more.

Selling a green product is no excuse for forgetting the rules of supply and demand.

More Monday on the steps green product and service providers need to take to create sales success.

Greener restaurants are here to stay

The November issue of Restaurants and Institutions featured an interview with Green restaurant expert Michael Oshman.

According to Oshman, the current economic problems in the restaurant industry and the economy at large are not likely to reverse or even slow the expansion of green practices in food service. The changes, he contends, are consumer driven and are coming from a real and growing concern for the earth and its resources. That hasn't dropped, and is in fact growing, as resources become more scarce and fears of global warming grow.



Even so, he noted that one of the biggest obstacles to green practices is a perception that's what's good for the earth cannot be good for business. That's a myth he would like to help dispel. In his blog, he also listed ways in which going green is actually good for a business.

Greening your cleaning products at work

It's amazing that most of us survive the workday.

Between the toxic off-gassing from carpets and plastic desks and the toxic cleaners, we are all getting more than our share of dangerous chemicals every day we're in the office.

Fortunately, there are alternative to the toxic soup in which we spend the majority of each weekday.

Green cleaning products have gone mainstream. There are now green choices for every kind of business, from tackling a greasy restaurant kitchen to cleaning office floors and carpets.

Leaving behind the furnishing and carpets (that will be another post), resources like the National Green Pages list dozens of sources for safer alternative to standard janitorial cleaning supplies.

Low cost, "homemade" choices also work well in the office. Using household products like white vinegar, baking soda, fruit oils and other safe alternatives allows your company to maintain a clean property, save the environment, protect employee health -- and best of all, save money at the same time!

With all those incentives, what company wouldn't want to go green?

Green lunchrooms and kitchens at work make a difference

At many companies, the only acknowledgment that employees need to eat and drink is a bare break room...some tables, maybe a few vending machines featuring the popular junk food of the day and maybe a microwave. The result?

Most people go out to eat fast food, order in, or snack on the vending machine fare.

Aside from obvious health issues associated with this, there's a green factor as well. Or rather several green factors.

1) Going to the fast food drive through means employees are using their cars...and contributing to the carbon footprint. Sitting idling in the line is even worse than the to and from.

2) Fast food is typically heavily packaged, so a sandwich, fries and a drink generates a large amount of non-recycled trash including boxes, cartons, bags, straws, wrappers, cups, paper napkins and plastic condiment packages.

3) Ordering in requires a delivery person to drive, again adding to the carbon load.

4) Delivery food may be even more packaged than fast food, including reflective covers or plastic covers, foil trays and plastic flatware.

5) Vending machine food reflects a high level of processing, so factories are using energy to prepare and package the food, the food must be delivered via car or truck, and the food is typically packaged in non-recyclable plastics.

So how can a company make lunchtime greener...and save money on employee health issues, too? Here are some suggestions from readers and others:

1) Create a green lunchroom. Add an energy efficient refrigerator so employees can bring lunches from home. Leftovers and other "brown-bagged" meals are typically lower in fat, sugar, salt and processing than fast food or delivery alternatives.

2) Provide a sink and washing supplies so employees will use glass or reusable plastic containers for their food. Having a way to wash up after eating encourages employees to bring reusable containers.

3) Have enough energy-efficient microwaves to make heating food feasible during peak lunch hours.

4) Give employees enough time to eat a proper lunch. If you only have half an hour, a fast food burger might feel like the only option. A full hour not only encourages healthier eating, it will allow employees to function more productively in the afternoon, as they will have had a significant restorative break.

5) If possible, offer hot or cold healthy lunches at work. Contract with a caterer or restaurant who has adopted green practices, and have them bring in minimally packaged foods.

6) Work with your vending machine supplier to replace highly packaged and highly processed foods with fresh fruit and food in recycled containers. Make sure there are visible recycling bins in all break and lunch rooms, and actively encourage employee recycling.

New changes in the FMLA mean new paperwork -- and lots of potential waste

Changes approved earlier in the year to the FMLA (Family Medical Leave Act)are expected to go into effect any day now*. The extensive clarifications will make many mandatory labor law posters obsolete. Human resource and labor law handbooks, manuals and forms will also need to be replaced with versions that reflect the changes.

That means potentially millions of sheets of paper and countless laminated (and therefore un-recyclable)labor law posters will be thrown away. Little if any of this material can or will be recycled, and little was on recycled paper to start with.

And this is not an isolated incidence. Every year, dozens of Federal and State regulations change, and with those changes, go waste. Lots of waste. In paper, in landfill space and in money. But the changes are mandatory! So what's a business owner to do? Here are a few suggestions for keeping your business in compliance without wrecking the earth:

1) Choose recycled (and recyclable)products. From labor law posters to file folders, there are recycled versions available. You just have to look.

2) Choose downloadable or printable versions of mandatory forms, then print them on recycled paper using soy or vegetable inks.

3) Only buy or print the forms and papers you really need. Stockpiling 500 I-9 or FMLA forms may save money on each sheet, but when the changes come and you need to replace them with a newer version long before you've run out, any savings evaporate.

4) Recycle obsolete books, manuals and forms rather than throwing them in the trash.

5) Choose non-laminated posters and other materials whenever possible. Laminated paper is generally not recyclable.

*(Information about changes in the FMLA will be posted on sites like G.Neil, ComplyRight and HRdirect as soon as they're finalized.)

Europe ahead of US in green business practices

European businesses have been leading the way when it comes to green business innovation. That's drawing traditionally U.S. companies into the more profitable European green market.

In October, the Miami Herald reported on Office Depot's expanded European market share. The company, which has suffered losses domestically despite several years of green product development and promotion is experiencing large and profitable gains with European businesses and consumers who are more willing to seek out and pay for environmentally friendly products and services.

In Frankfurt, Germany subway station escalators are equipped with sensors so they run only when someone approaches or is on-board.

By the mid-90's, all new construction through-out Europe had to adhere to mandated levels of energy savings. And many European architects make sustainability a central theme in their work.

So why is the U.S. lagging behind?

Some analysts theorize that the high level of E.U. involvement in environmental issues has pushed green consciousness to a higher level. Others believe the profit-driven corporate power structure behind lobbying efforts in the U.S. has quashed green development as unprofitable and therefore undesirable. Others cite the material abundance which has typically characterized American life in contrast to the relative lack that existed in some parts of Europe only a few decades ago as an explanation for a more sustainable lifestyle.

Whatever the reason, U.S. businesses need to work harder to convince consumers to buy green and live green, especially when cheaper non-green choices abound.

What has your experience been as a business owner, employee or manager? Are American less enamoured with green products than our European cousins? How can we break that trend? I would love to hear your ideas and experiences!

Are hybrids right for your business?

In late October, UPS took a bold move into a greener world with the introduction of hydraulic hybrid vehicles (HHVs) to its fleet of delivery vehicles. This makes it the first package delivery company to adapt hybrid technology.

Earlier in the month, Toshiba American Medical Systems announced they would be replacing their sales and service vehicles with Toyota Camry hybrids. They hope this move will reduce CO2 emissions by as much as 25%.

The hybrids will take us closer to our goal of reducing emissions in logistics from company cars and freight by one percent each year,” said Paul Biggins, director of Regulatory Affairs and head of the TAMS’ Environmental Affairs Committee.

In 2007, Bausch & Lomb announced that their 400-vehicle fleet would be replaced by hybrids. McDonald's in the UK is running their vehicles on recycled cooking oil. And plans are underway to replace high-gas use NYC taxis with environmentally friendly hybrids, a move that is already in place in Washington D.C.

So how do you know if hybrids are a good choice for your business?

Here are some questions you need to ask:

• How much of your company's business is conducted on the road? If company car mileage is low, the payback time on a hybrid might not make business sense. If mileage is high, especially in cities and on other secondary roads, a hybrid might reduce fuel costs significantly.
  
  
• Can you afford to replace a large enough percentage of your fleet to make a difference? If you're running 300 vehicles, replacing a half dosen with hybrids probably won't save enough fuel to make it worth while.
  
  
• Might switch have PR value or social value beyond the cost savings? Having your company viewed as green and earth-friendly might yield a significant boost to public image. And that could be worth more than the cost of a new hybrid vehicle.

Getting the word out about your green business

Whether your company's move to the greener side has been inspired by a deep commitment to the earth or a keen awareness of the costs of business-as-usual, you'll want to get the message out to customers and business associates. Even the most altruistic managers and business owners will want to leverage the changes into positive publicity for the company.

Let's face it: green sells.

So how and where does a business share the information about their changes? And how much change is enough to make a campaign or press release seem meaningful? Let's start with the latter -- what's enough of a change to warrant publicity.

1) The change represents a significant alternation in the way your company and/or industry did business in the past. For example, allowing two or three people to telecommute is not news. Allowing 30% of your workforce to do so IS news. Especially if your industry or region is not heavily invested in the concept at this point.

2) The change involves a technology, process or business model that arose from your company.

3) The change results in a significant or potentially significant savings in energy or a significant reduction in waste or pollution. A process change that saves one tree a year is a nice gesture, but will appear self-serving and insignificant in a press release. A technology that saves 20 trees a month is newsworthy.

Once you've determined that your news is indeed,well, news, the question of where to shout the news remains. Here are a few suggestions:

1) Targeted press releases. A number of press release services allow you to select your audience, and environmental targeting is typically one of the choices. Make sure big names in the environmental news world like the Sierra Club and the World Wildlife Fund are among the release recipients, along with newspapers in environmentally savvy regions of the country. In the U.S., that would include the Intermountain West states like Colorado, Utah and Montana, Pacific Northwestern papers and most areas of California.

2) Print and online resource publications like the National Green Pages, Treehugger or GreenBiz.com.

3) Green magazines and e-zines. Magazines like Mother Earth News or Good are excellent places to discuss your new business choices. Contact their editorial staff with your story idea or submit a query for an article you'd write yourself. New green publications are being added almost daily, so check your newsstand or do an Internet search for new venues to discuss your green company.

4) Word of mouth. One of most effective ways to promote your green business is through word of mouth. Talk with people online in blogs and other social networking sites. Get your employees excited and talking. If customers are enthusiastic about the new changes, ask them to spread the word. Conversation, person to person, is the best way to build a loyal base of staff and customers.

Even executive toys are going green

It was bound to happen. Once the paper and the light bulbs and the water bottles started to go green, the extras could not be far behind.

The green business movement has even begun to impact on Executive Toys!

Environmentally savvy execs can now adorn their desk with toys that reflect their commitment to the earth. Here are a couple of the fun toys we found in our search online:

It Must Be Green

This U.K. company offers elegantly crafted executive toys that work on solar power instead of batteries. From tiny turbines to aeroplanes (airplanes) with spinning propellers, each toy would be a great conversation starter for the boss's office, or as a reward for an employee who starts a new green trend or process at work.

G.Neil

The business experts at G.Neil are making the move into green products, as well. Their Desktop Buddy motivational pens are made of biodegradable, corn-based plastic, and make a fun reward for employees or a light addition to an executive desk. The company also carries an extensive collection of recycled paper greeting cards for customers and employees and offer many essential personnel forms in downloadable formats so customers can print only what they need on their own recycled paper -- a process called "Just in Time Printing". The company has plans to add additional green products in the near future.

Creating a green product line in your business

With the rise in environmental awareness among consumers, many companies are scrambling to add a green product line to their selection. Even B2B companies are feeling the pinch, as more companies want to show their green side to business clients.

So how do you start a green line in your business? Here are a few ideas to get you started:

• Look at what you already have. Are any of your products made from recycled materials? Are any of them fully recyclable? Do you have products made from earth friendly formulas, like natural citrus oil cleaners or herb-filled heat wraps? Green doesn't have to mean 100% organic and recycled...there are different levels. Pretty much whenever your product is safer, cleaner, lower in energy use or could be considered a realistic part of the "Reduce. Reuse. Recycle." triad, you have a potentially green item to promote.
  
  
  
• What about your services and processes? Many businesses have employed greener practices as part of their services, manufacturing processes or in-house procedures. You may have made the change for economic reasons, but the effect is greener business. Highlight those choices in your advertising, catalogs, web sites or blogs. Mention the fact that your widgets are made in a factory that recycles 80% of its manufacturing waste. Or that the restaurant is using all natural cleaners and biodegradable paper goods. It won't change the composition of the final product, but it does make your goods arguably greener.
  
  
  
• Look for greener choices to add to existing product lines. If your company sells business paper goods, find some recycled papers to add to the catalog or website.
  
  
  
• Use a logo or other symbol to mark the green items. Or create an insert or special landing page that features your new and existing green products. You don't have to have a lot of green choices to make a statement, and a difference.
  
  
  
• Keep up on green trends in your industry. Make a point of researching changes in practices or products in your industry. As you can, add new green items, incorporate greener practices, make green choices in new construction or equipment purchases and let your customers know what you're doing.

Restaurants are joining the green trend

Just came across this site in my green wanderings online.

Ready to Go Green?: "

When I founded the Green Restaurant Association 18 years ago, the word green was still just a color and its best-known advocate was Kermit the Frog...

It's a new blog from the Restaurants and Institutions site. It's heartening to see so many industries joining the green movement!

As a former restaurant owner, I know that restaurants are a great addition to the trend. From paper napkins and restroom supplies to cleaning products and food waste procedures, they can make a huge contribution to reducing, reusing and buying recycled.

I will be adding this new blog to our sites to watch list on the side. Thanks, Michael Oshman for your new contribution.

I also found this post on EcoSalon about what makes a restaurant green. Check it out for more tips and ideas.