covsetorry
thing that I learned on that trip was that for the
25,000 people who were visiting my institute every
year, that’s how many people were paying to go
through that exhibit every single day.”
Hirshberg realized that he needed to have the
power of Kraft to reach larger numbers of people.
And to do that he needed to show that his green
technology could make economic sense.
Otherwise, he says, “we could be the model
of doing the most ecologically phenomenal things
possible, but if we couldn’t show you could make
money, it wasn’t going to happen. It would be some
cute hobby.”
And so a light bulb went off. An energy-saving
light bulb, no doubt.
“It was apparent to me that business was the
reason we were in the environmental and climate
fix that we are in as a species, and that business was
going to be the way we were going to get out,” says
Hirshberg. “Business has the power to concentrate
capital and resources, and if business makes different decisions, and makes the solutions a priority,
we’ll see much different results.”
And thus the Stonyfield mission was born—to
educate consumers and producers about the value
of protecting the environment and to serve as a
model that environmentally and socially responsible businesses can also be profitable.
(A little postscript to that story: Stonyfield passed
Kraft in sales of yogurt—Kraft owns Breyers—six
years ago.)
Making it work
According to Hirshberg, most business models
follow this premise: Make the product as cheaply as
you possibly can, so you have an enormous margin
left over. Use this huge margin to buy advertising
everywhere and try to convince the consumer to try
your product. From that interest and awareness,
hopefully you will get some loyalty.
“Stonyfield can’t afford to do that,” Hirshberg
says. “First of all, we will not compromise what goes
into our product, so our gross margin is much, much
lower than those [who follow the ‘make it cheap’
model]. Instead, the programs we developed—Profits
for the Planet, Menu for Change, Strong Women
Summits, Bid with Your Lid and Good2Go—build
loyalty by doing all these things.
18 The Costco Connection SEPTEMBER 2006
Then ...
and now
“The quality that goes Flip your lid: When Stonyfield switched from
into our product is a plastic to foil lids, the company saved tons of
direct result of the kinds of money and reduced tons of waste.
investments that we’re
making into people, into organic farming and into
our programs,” he continues. “These investments
make a better yogurt. They create value. And value
equals loyalty.
“I’m really proud, because the mission has
essentially remained the same for 23 years. I know if
I had compromised anything in terms of quality
along the way, any aspect of that mission, I never
would be here.”
Kaymen says, “Gary has been able to grow the
company, be successful and still maintain that perspective and those values.”
PHOTO COURTESY STONYFIELD FARM
Smoothie
operators
CONTINUED FROM PAGE 17
with cholesterol re-absorp-tion in the digestive tract.
Bifidobacteria (Bifidus)
stimulate the immune system, help prevent common
digestive ailments and
support healthy growth
and development of the
digestive tract.
Inulin has the health
benefits associated with
natural fiber. This fiber
not only supports the
live active cultures in the
yogurt but also helps boost
calcium absorption. Studies
have shown that 8 grams
per day of the type of
inulin in Stonyfield Farm
yogurts increases calcium
absorption by as much as
20 percent.
“We’re really excited
about getting this item
to our members,” says
John Lee, Costco buyer
for foods. “This is so much
more than just a good-tast-ing snack.”
The 10-ounce strawberry Kirkland Signature
by Stonyfield Farm Organic
Smoothie will be available
in six-packs at all Costco
locations.—TFJ
Mission accomplished?
The good news is how much things have changed
since people thought that organic chow was all “
hippie food.” In the United States, organic food is a $20
billion business that is growing 20 percent annually.
Every major food company is in it. They may not buy
into the philosophy of why, but they now know that
you can make a lot of money selling it.
Yet, Hirshberg is still champing at the bit.
“I would say we are just getting to the starting
line.” he says. “I have a very severe and impatient sense
that we need to go faster.
“Every trend that you can study suggests that by
the middle of this century we’re going to be in a position where the air may be unbreathable, the water
may be gone.
“It’s not like everybody has to walk around
feeling guilty, but if we don’t recognize the power
we have with our purchase, which is otherwise
known as a vote, to vote for the kinds of products,
services and, ultimately, industries that will take
toxins out of the biosphere or that will help give
our grandchildren a break, then we’re missing the
boat. We have the power to encourage businesses
to do the right thing. Otherwise, our grandchildren are going to be sitting there saying, ‘What the
hell were you people doing? How can you have
blown this bountiful, gorgeous, incredible thing
called the planet Earth?’
“And I think Stonyfield is an example that
it doesn’t have to be that way.” C
