Tangibly Doing Well and Doing Good

We were so inspired by this posting as brandchannel.com that we want to share it with you here...and highly recommend brandchannel.com (and see below re: Mr. Barry Silverstein and his new book, "The Breakaway Brand") as a wonderful resource(s) for "what" we are trying to do and "how," and hopefully for you!

Newman’s Own
on the side
by Barry Silverstein
July 30, 2007 issue of brandchannel.com

Brands associated with individuals’ names are commonplace. Designer names have dominated the fashion world. Perfumes and cosmetics carry the names of their creators. Celebrity endorsements are a different phenomenon entirely—paid arrangements in which celebrities lend their name to a brand.

And then there is a brand category that combines both: the brand created by a celebrity. This particular category is littered with failures. Reggie Jackson’s candy bar, Frank Sinatra’s neckties, and Diane von Furstenberg’s tissues are just a few examples of celebrity brands gone bad. The George Foreman Grill is one prominent exception that has achieved success.

The fact is, many such brands exist to enhance a celebrity’s name recognition and add to his or her net worth. They tend to be nothing more than me-too products with a novel, notable name. But there is one celebrity brand—Newman’s Own—that came to market quite by accident. Today, it is an international sensation. And incredibly, the brand’s goal is to give its profits away.

Despite his storied acting career and being known for tough guy roles in movies such as The Hustler, Cool Hand Luke, and The Verdict, Paul Newman is also a man with a sense of humor and humanity. Perhaps these qualities have much to do with Newman’s Own’s success.

The amusing story of the company’s birth is recounted in Shameless Exploitation in Pursuit of the Common Good, a book written by the company founders. “Newman’s Own” was the intended name of a restaurant the actor was supposed to open near his home in Westport, Connecticut. Instead, as Newman and his friend/co-founder A. E. Hotchner like to say, Newman’s Own, the food products company, “started as a joke and got out of control.”

Newman and Hotchner enjoyed bottling home-made salad dressing and giving it as gifts to friends and neighbors for the holidays. Newman was already known for creating his own salad dressings. Even when he went into a restaurant, Newman had the staff mix up a special dressing using ingredients he specified.

Everyone loved the dressing, so Newman and Hotchner thought, why not sell it? They went so far as to visit with a top marketing firm and were told it would take on the order of $400,000 to test market the product. They quickly rejected that idea and blindly went off on their own, investing about $40,000 in the fledgling venture.

No one took them seriously, least of all themselves. In fact, that’s probably what gave Newman’s Own its lasting personality—a blend of Paul Newman’s personage and a quirky sense of humor that pervades the packaging to this day.

In 1982, it is Stew Leonard, legendary owner of one of the country’s most successful supermarkets in Norwalk, Connecticut, who strong-arms a bottler to package Newman’s Own Oil & Vinegar Salad Dressing. Leonard convinces Newman to put a likeness of his face on the product bottle because, he says, “How else do you get their attention?” Newman hesitantly agrees. Newman and Hotchner decide to poke fun at other products and include the phrase “Fine Foods Since February” on the label. Leonard sells 10,000 bottles of the stuff in two weeks and a brand is born.

From the start, Newman decided that if he was going to lend his name to the business, it would be a philanthropic endeavor. At the end of 1983, Newman’s Own’s first full year, the company had sales in excess of US$3.2 million. Newman’s Own gave away the $397,000 of profit to various charities. Twenty-five years later, Newman’s Own has given away over US$200 million.

Charity not withstanding, the brand must represent quality products people want to buy. When Newman’s Own brought its first salad dressing to market, it competed against numerous better-known products from such industry giants as Kraft. At the time, all of the leading salad dressings used sugar, artificial coloring, gums, and chemical preservatives. The ingredients in Newman’s Own salad dressing were all natural. Newman’s Own continued this strategy as it launched brand extensions and new product lines. Salad dressings led to pasta sauces, steak sauce, marinades, salsa, lemonade, and popcorn.

Ten years after its founding, the company started a division called “Newman’s Own Organics,” led by Newman’s daughter, Nell. In 2001, Newman’s Own Organics was spun off as a separate company. The product line includes pretzels, cookies such as “Fig Newmans,” chocolate bars, dried fruit, soy crisps, and coffee. The company has also launched a line of premium pet food.

Newman’s Own may distribute its profits to charity, but it follows principles that contribute to its growth and success as a profitable business entity. The company has expanded to fifteen countries outside the United States, including Argentina, Australia, France, Japan, and Norway. It has struck a co-branding deal with Green Mountain Coffee Roasters. It distributes its salad dressings and coffee through McDonald’s restaurants.

On the charitable side, Newman’s Own distributes its profits through the Newman’s Own Foundation to thousands of charities within the United States and in other countries, particularly where products are sold. Newman’s Own also sponsors the PEN/Newman’s Own First Amendment Award, given annually to a United States citizen who fights to safeguard the First Amendment right to freedom of expression.

Why has Newman’s Own succeeded where other celebrity brands have failed? One reason might be that the company has a brand proposition that can’t be beat. Why wouldn’t a consumer show a brand preference for Newman’s Own when she knows that she can buy a high-quality product while doing some good in the world?

Barry Silverstein is a 25-year advertising and marketing veteran and co-author of The Breakaway Brand (McGraw Hill, 2005).

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Newman’s Own - on the side

Newman's Own and Newman's Own Organics have been very inspirational to us, to the point of us "walking our talk," beyond our seemingly more stable food industry marketing and association publications and communications careers, respectively, to now launch a firm to specifically help the next generation(s) of creative community enterprises and socially responsible businesses, with food and much more, whether they are celebrities (yet) or not. Thanks for your consideration of Sunrise Advisors at enterprisesunrise.com. We hope it really is a shared "new day for creative community enterprises and nonprofits." :-)
Emmett, Sunrise Advisors - July 30, 2007

Words and Intentions and Results

What is a Creative Community Enterprise (CCE)?

It is generally known what a nonprofit organization is in concept, and that outside of the United States, nonprofits are often called NGO's, or non-governmental organizations throughout the world.

However, in recent years, with heightened awareness of the opportunities businesses have become involved with in their communities, and concerning the environment and other global challenges, different terms have been widely communicated to try to describe these changes. "Socially responsible business" has been one such term, yet in our experience, it is can sometimes lack understanding as to specifics. Indeed, the Spring, 2007 issue of the Stanford Social Innovation Review further explores a specific, greater need for clarity. Even within this illuminating publication, across several interesting articles, there appear to be different interpretations of whether the terms such as "social" and "business" (or similar words) combined should be limited purely to income-generating spin-off enterprises of nonprofit organizations.

Compared with the article starting on page 28, "Social Entrepreneurship: The Case For Definition," which ultimately leads one to believe that, the article starting on page 64, "Secret Agents: Why Method Products Keep Their Eco-friendliness Under Very Attractive Wraps," details how a company, an enterprise, actively competing (effectively) against major consumer packaged goods corporations has environmental sensitivity at its core as a socially responsible, and for profit business (and yes, its profitable!).

Sunrise Advisors -- based on our range of experiences, brought to working within this promising new movement in business, as well as those nonprofits that spin-off income-generating businesses to benefit their organizations, programs, and missions -- has developed a phrase that we feel best describes the kinds of enterprises we hope to help grow.

Creative Community Enterprises (CCEs) are what we like to describe as socially and environmentally-responsible, private sector, income-generating, job creating products and services businesses (even if owned by those sometimes not in the private sector) that view the marketplace -- the world(s) of their customers, neighbors, and fellow citizens of their individual countries, and the Earth -- as inherently interconnected, and that doing well and doing good makes the best operational common sense, including in their own enlightened self-interest.

Sunrise Advisors seeks to focus our energies and services on those Creative Community Enterprises (CCEs) that, in their strategic business planning, commitments to innovation, and daily operations, produce positive, measurable, sustainable results -- financially, and for our environment and our fellow humans -- not as afterthoughts, but rather, stakeholders in essential, shared success.

Back To The Future

We recently visited Old Town San Diego and the California State Historic Park, and I continue to be impressed with the design and longevity of what over time (200 or so years) became "a city within a city." In the midst of all of the modern construction going on around us, and then thinking seriously about our leadership in "a new day for nonprofits and creative community enterprises" through Sunrise Advisors, I now realize that Old Town San Diego, and its remarkable and colorful history, has much to teach us today about what we are working on with our valued One Earth client and its CEO Steven Matt..."sustainability."

Consider this passage from the California State Parks brochure entitled La Casa de Machado y Silvas: The Commercial Restaurant at The Machado-Silvas House:

The original house (c. 1843) was a simple, rectangular, adobe structure with low-pitched thatched or tile roof. Little wood was used for construction due to the lack of available timber around San Diego. Adobe, composed of clay, water, cow manure, and sand, was a highly regarded building material that brought coolness in the summer and warmth in the winter. Whitewash, composed of crushed seashells and lye, protected the somewhat fragile adobe bricks (that have since survived earthquakes, floods, heavy rains, the 1872 fire that destroyed much around it and more) and helped brighten the rooms...The original floors in the house were likely made of compacted earth. Sometime later, they were resurfaced with ceramic tiles -- possibly with tiles salvaged from the Spanish Presidio -- fort -- on the hill above Old Town, common practice around 1835.

So in this time now, 2007, when we are hearing "alarm bells" about global and US deforestation and over development -- "sprawl" -- all around us, and we see so much building, and business and consumer materials that further add to global warming, perhaps there is a very real and very important lesson to be found in a certain adobe casa or house. Later it became a restaurant and more, that across its history, found a way to make good use of cow manure as a sustainable building material.

I have read methane from cows and their wastes are also a huge contributor to global warming, all over this way-too-rapidly "developing" world. Perhaps there are serious opportunities for affordable, environmentally "positive" housing, and related community investment, eco-friendly development or redevelopment, and truly, empowerment...maybe even a "new market" for the otherwise harmful cow manure and methane that could actually generate "new" and better building materials that would generate new US and global blue collar jobs, on the economic merits, that are seriously in need...through looking "back to the future," and learning the good of our past.

Sunrise Advisors hopes to tangibly generate measurable results in that "new day" which must come soon for our environment -- and all of us.

Seth Godin Video from TED Conference

Sliced Bread and Other Marketing Delights

TED stands for Technology, Entertainment, Design. It started out in 1984 as a conference bringing together people from those three worlds. Since then its scope has become ever broader. The annual conference now brings together the world's most fascinating thinkers and doers, who are challenged to give the talk of their lives (in 18 minutes). This video speaks volumes about the importance of brand and marketing. In a world of too many options and too little time, our obvious choice is to ignore the ordinary stuff. Marketing guru Seth Godin spells out why, when it comes getting our attention, bad or bizarre ideas are more successful than boring ones. And early adopters, not the mainstream's bell curve, are the new sweet spot of the market. This was filmed February, 2003. Godin is the author of numerous business books, including most recently "The Dip," a New York Times bestseller. Why do you think bizarre ideas get more attention then boring ones? And who would have thought that the concept of sliced bread would take years to catch on?

Stonyfield Farm Strikes the Right Environmental Chords

We like this company for many reasons, and of course, it's not just about the apricot mango yogurt. President and "CE-YO" Gary Hirshberg, who started at the company in 1983, has spearheaded enormous initiatives. For the past 25 years, Gary has overseen Stonyfield Farm’s phenomenal growth, from its infancy as a 7-cow organic farming school in 1983 to its current $260 million in annual sales. Stonyfield has enjoyed an annual growth rate of 27.4% for more than eighteen years, by consistently producing a great-tasting product and using innovative marketing techniques that blend the company’s social, environmental, and financial missions. The company's environmental initiatives include: supporting organic milk and agriculture; giving away 10% of its profits each year to organizations that promote sustainability; using environmental packaging and including important messages about the environment on the package lids; being an official partner of the recent Live Earth concerts; being the recipient of nearly 50 environmental awards; and sponsoring a veggie-powered bus in 2006 to tour us universities to spread the word about climate change.

The web site has so many features one could get lost in it, except for the fact that it is so well organized and presented. The site features: recipes, 2 blogs, "mooseletters," a company history, "menu for change" about programs that support healthy food for school kids, the "Have a Cow" program which gives the viewer first hand insights into life on the farm, calls to action on numerous areas regarding the environment and education, nutritional and medical advice from experts on call, and much more. The site is a great testimony to the fact that one can have a great web site that is still, in the end, fun, and the creators obviously never lost site of this. A visit to this site is well worth it, and let us know if you don't feel like you just came back from a day at the farm.

Interview with Steven Matt, founder, One Earth

The Matt brothers, Steven and Dino, recently returned from a road trip out west, where they traveled in a retrofitted biodiesel vehicle to film interviews with representatives from sustainable companies, such as Clif Bar, Simple Shoes, and Nau, an outdoor clothing company. Their mission was to spread the word about how companies can combine profitability with sustainability. Back at their home base in Brooklyn, Steven is working on making the community of Fort Greene a greener environment, and has recently launched One-Earth.com, a wiki that will provide a community for sharing eco tips, where the participants themselves create profiles and become part of the network and resources. Steven also works as a freelance "green" graphic designer. Sunrise Advisors is pleased to welcome One Earth as its first official client, and looks forward to a long and fruitful collaboration ahead.

How did you first get the idea to drive a biodiesel vehicle, and why this approach to dealing with environmental issues?
I wanted to know what companies were doing to reduce their impact on the environment, and to interview their representatives face–to–face. This resulted in the documentaries we filmed during the trip that are now posted on our web site. While I was researching sustainable companies to highlight, I came across “VeggieWheels,” a company that converts vehicles to run on biodiesel fuel. It’s an efficient way to get around with minimal effects on the environment, and a great alternative to traditional cars. Nate Petre, the owner, agreed to donate the vehicle to One Earth.

What do you think is the most popular misconception about sustainability in this country today, and what do you think we can do about it? Also, what do you think is the single most damaging effect we are having on the environment right now?
The most popular misconception about sustainability is that it only concerns environmental issues. Yes, preserving biodiversity and natural resources is important to the practice of sustainability, but one has to consider the social and economic aspects as well. If all aspects are considered, our society will be able to meet its needs and express its greatest potential locally and globally.

The single most damaging thing we are doing to the environment right now is not educating our children about sustainability. We are indirectly harming our environment by not integrating sustainability into the curriculum of schools throughout the world. Ideally, sustainability should be a part of everything–it’s a practice. If we educate ourselves and build it into our way of life, we will really begin to see the positive effects of this practice.

You have stated that you looked at climate change as a "design problem." What do you mean by this?
There are two factors that matter when organizing information about sustainability: geography and lifestyle. All communities are different; each has their own problems and therefore their own solutions. They need to be treated individually. Currently, organizations disseminate generic energy saving “tips” that may or may not be relevant to most people. Not only is this method inefficient, but also it’s also ineffective. One Earth developed a system that allows residents to share user–generated information about their local community. Our website is designed to provide locally–applicable, lifestyle–relevant information-- it’s completely personalized.

What are the highlights of some of the interviews you have had?
One of the most innovative companies we interviewed is Nau, an outdoor clothing company that has successfully integrated sustainability practices into nearly every aspect of their operations. Their “webfront,” a gallery–style storefront, reduces the amount of square footage required for each Nau store, therefore reducing the amount of energy consumed by 1/16 that of a standard store. Chris, the CEO, explained their 5% donation program. Not only is it greater than most companies (Patagonia’s 1%), it allows the customer to choose local organizations to donate to.

You recently launched a new web site, one-earth.com. Can you explain its purpose and some of its features? What do you hope to accomplish with the web site?
The web site is the world’s first social–geographic networking web site dedicated to helping people reduce their impact on the environment. Our advanced organizational structure easily allows people to share information about their local community. We’re not telling anyone what they should be doing, we’re allowing local residents to discuss the issues themselves and develop their own solutions. We’re simply giving them the tools to communicate and collaborate. This sets us apart from all other environmental organizations out there now. The key feature of the site is the “wiki,” which allows users to edit actions they can take in their local community to reduce their impact. Some of the other features include a carbon calculator, community-specific forums and blogs, a social networking system based on geography, and a user–regulated community home page. By incorporating a social–geographic networking system into the site, we’re also encouraging residents to bring their actions out into the open and share with their neighbors what they’re doing to reduce their impact on the environment. With all of these features, we hope to educate and empower individuals to take tangible actions in their local community.

What kind of sponsorships are you seeking and how will they further your goals?
It is our goal to educate consumers about the indirect influences they have on the environment. We promote and will be looking for alliances with businesses that practice sustainable resource management and waste and pollution prevention. Any business that does not follow these practices is a liability to the environment, the public and the economy. By allowing only green companies to advertise on our site, we will be promoting green consumerism.

What role models do you have for living a sustainable lifestyle and how
have they inspired you?
Actually, my younger brother, Dino, has become an unexpected role model for me. He has an innate propensity to consider everything in a situation, and this allows him to always see the bigger picture. As a result, he’s very concerned about the environment. He’s also very thrifty-–always innovating and using things in a creative way.

Do you have any statistics or info on how much would be saved on carbon emissions if everyone in the US drove using vegetable- based vehicles?
Most importantly, biodiesel is a renewable domestic resource. It’s biodegradable and nontoxic. There are many different grades of biodiesel, the most common being B20 (20% biodiesel and 80% petroleum diesel). Burning B20 reduces net emissions by about 16% compared to petroleum diesel. Unfortunately, not everyone in the country can convert to biodeisal, there just isn’t enough cropland to meet the production need. Still, it’s a great start, and why not use it if we have the opportunity?

Revitalizing Resources

On this day of Live Earth, 07-07-07, and near the 10th anniversary of the passing of environmental messenger, musician, and inspiration John Denver -- for our environment, and other socially responsible missions and organizations, we start this Sunrise Blog from Sunrise Advisors with an example of our style of "real world effective" earned income generation, in research, strategy, branding, fund raising, dataWeb and a range of coordination and management, coaching, and communications. This is truly a new generation, "a new day," in fund raising consulting firm or company, so we hope you find useful, reflect on, and find insightful:

Convince your business donors (or your colleagues as the creative community enterprise you are!) to make loans against their own businesses, and use those funds as tax deductible donations to your nonprofit organizations. This may also be a possibility with self-lending employee-driven personal 401k retirement (or similar) accounts, though I am not sure in that instance (yet) charitable donations are a federally approved use...yes or no? Does anyone out there in caring blogland know more? Any organization or enterprise should get an advisory opinion, ideally pro bono (donated), from a senior tax partner accountant, not just any CPA, explaining how the clients come out ahead in the comparison of the mandated interest rate they would charge themselves in effect, versus the maximum legal, "strategically combined" US federal and state donor tax breaks for giving to your organizations. How many cents on the dollar? Would this work within other countries and their tax codes, and charitable giving to NGO's (what nonprofits are often called outside of the US, "non-governmental organizations"). In our experience in previous employment on a leadership team of a measurably top-performing economic development zone (for four years, and through the nearby, serious challenges and tragedy of September 11, 2001) and nonprofit organization (NGO) in New York...when we were able to "reveal" 70 cents on the dollar (!), many said it was far beyond what any CPA had told them, and it definitely increased interest in "activating donations" to a significant community empowerment project.

So "this" all is what we are MOST interested in specifically, truly new "combos," legal and ethical, yet innovative, in "nonprofit (NGO) investment banking" and "community investment excellence." We welcome and appreciate your interest in doing well and doing good, locally and globally -- together. Please be in touch. Thanks.