Organics and ethics get embraced by big business
The year started on a busy note for the natural drinks' sector. Two deals, on both sides of the Atlantic, have confirmed the positive outlook for the industry. In February, Coca Cola acquired a 40% stake in Honest Tea, an organic and Fair Trade certified ready-to-drink tea company, for a fee of $43 million. Across the pond, McDonald's recently confirmed plans to ditch its current provider of teas - Tetley of India's Tata Teas - in its 1200 outlets across the UK for the more sustainable produce of PG Tips, owned by Unilever and certified by the Rainforest Alliance.
While the nature and the scope of those deals are quite different, they clearly indicate where the sector is heading: whereas the state of the overall economy remains fragile (in the US, as well as in the UK), the sustainable and organic phenomenon looks more promising than ever. Better yet, it seems to have reached a tipping point as big business is taking it to the mass audience.
However, good numbers and growth trends are only part of the story. In fact, we are currently experiencing a shift in the way people approach food. New habits are discovered and there is a newfound passion for all things tasty and fit. But while the broader picture is encouraging indeed, it is unclear how the presence of such food juggernauts will impact the organic/sustainable trend.
First, it remains to be seen how mainstream exposure will affect the way companies do business. For example, while Coke assures that it wants to be "more like Honest Tea", the latter prepares to launch a mass-market line of its bottled teas containing more sweeteners. Particularly to the health-conscious crowd, such news serves as an uncomfortable reminder of the unwholesome diet they reject and suggests a step in the wrong direction for the firm from Bethesda, MD. Being more accessible does usually mean making concessions in terms of products' nutritional and gustatory features, which in turn have ramifications for the companys ethos. And thats a challenge most small companies havent faced before.
Secondly, and maybe most importantly, it appears that the latest trend is becoming more frequently based on labels and certifications than a genuine passion for change or quality improvement. It is understandable that a company like McDonalds can only benefit from offering Rainforest Alliance certified teas, but, given its track record, switching suppliers only on that basis does seem a little hypocritical. After all, what you are offering your customers is, first and foremost, a tea of certain quality and taste. Production standards and company ethics undoubtedly matter, but it would be dangerous to reduce the overall selective criteria to a mere juggle of labels. That is especially true when only fifty percent of PG Tips produce actually comes from sustainable sources. Or, to put it in another way, half doesn't.
The implications for the abovementioned issues are more important than they appear at first glance. The reputation of a whole industry is at stake, because increasing the (mis)use of labels and certificates as keys to peoples hearts and minds (as well as their wallets) diminishes their effect in the long run. The various symbols appear to be en route to becoming somewhat of a commodity - a seal that you can simply acquire and pin to almost anything. It is called "green washing" - and it represents a potential "shot in the foot" for the entire industry, especially in the context of a developing mass-market.
Also, there is a risk of establishing a false distinction between relevant product features. Indeed, one of the main benefits of labels that is rarely mentioned is not only that they certify certain product's characteristics or production methods, but that they simultaneously seem to retrograde the vast majority of "conventional" products that do not comply with them. It fosters a perilous "us vs. them" mentality. In fact, it is important to remember that if a product is not certified organic or sustainable, it doesn't mean it isnt intrinsically either or both. Gourmet tea is a good example. Organic or ethically harvested produce does not necessarily translate into better tasting tea or increased health benefits, whereas "conventional" tea producers may adhere on their own initiative or through other schemes - to the strictest of production standards.
Compliance with standards that are relevant to consumers and producers is not the subject of discussion and big companies can certainly contribute in preaching the message to the masses. However, the issue remains that certain concepts that may not be of primary concern to a particular type of business - might carry a stronger connotation for certain consumers. It is therefore in the interest of the entire industry of specialty products to prevent organic farming or particular business ethics from becoming some sort of get-out-of-jail-free card for products of mediocre quality and taste.
The word dog doesnt bark.