Seventh Generation
Founded: 1989 by Alan Newman (and Jeffrey Hollender)
Sector: Environmental Products
Business Status: Success (temporarily sold to Gaiam, Inc.)
Location: Burlington, Vermont
Website: www.seventhgeneration.com
Status 1991:
Berle described Seventh Generation as a ''well established mail
order company that sells from a colourful 32-page catalog (printed on recycled
paper of course), featuring more than 150 environmentally-benign products.
Numerous ecological information panels (FYI) and pertinent promotions make this
company a national standout'' (Berle 1991,
p.95)[1].
Founding
Story:
After living on a commune in Oregon, Alan Newman and his wife
moved to Burlington in 1970 where he helped launch several entrepreneurial
ventures. In 1988 Renew America; a non-profit which developed and sold energy
saving household products offered to sell Newman their catalogue business, but
Newman declined the offer. Later having failed to find a buyer, Renew America
gave the catalogue business to Newman. Newman renamed the catalogue Seventh
Generation based on the Iroquois saying; ''In our every deliberation we must
consider the impact on the next seven generations''. Later that year, the first
Seventh Generation catalogue was launched offering ''Products for a Healthy
Planet''.
Jeffrey Hollender was raised in New
York. After dropping out of college in 1977, he moved to Toronto where he
founded a non-profit organisation which offered courses such as ''Introduction
to Meditation'' and ''Marxist Thought''. He later returned to New York and
founded a for-profit version, which included courses such as ''How to Lose your
Brooklyn Accent'' or ''How to Marry Money''. In 1985 Warner Communications
bought the business for over $2 million, and Hollender became the head of
Warner''s new audio book division. He later left Warner to write a book called
How to Make the World a Better Place. Research for the book led him to Vermont,
where he met Newman[2].
Seventh
generation:
Hollender and Newman met at a time when
sales from the first catalogue had met expectations but the company needed
finance. By early 1989 Hollender had assisted with the development of a business
plan and gained investment for the company, raising $850,000, and an agreement
was made whereby both Hollender and Newman would each own 23% of the company
stock, and Hollender became CEO and chairman. Hollender remained in New York and
commuted to Vermont, and was mainly in charge of financing and product
development. Newman oversaw marketing and day-to-day operations as president. By
early 1990, monthly orders had increased from less than 600 to more than 7,000,
and by the end of 1990 sales of catalogue products reached $7million. However
the economy slowed, the Gulf War was imminent, and by the end of 1991 over 50
workers had been dismissed and Newman decided to take a break from the company.
The end result of this decision was that Newman was never able to return to the
company.
In
1993 on the advice of the board, Hollender took Seventh Generation public. A
deal was also made for the purchase Newman''s company stock. The public offering
raised $7 million, however throughout 1994 the stock price fell sharply, and
Hollender sold the catalogue business to Gaiam, Inc. At the time of the sale the
catalogue business accounted for 80% of company revenue. The proceeds went into
developing new products such as bleach and dye-free household soaps, recycled
toilet paper and other recycled products. In 1999, with the financial help of
friends and on the advice of the board, Hollender bought back Seventh
Generation.
The
board refused to allow Newman to rejoin either the company or the board. Newman
subsequently launched a beer brewery with a former warehouse manager at Seventh
Generation. The business was initially supplemented by personal funds, however
the sale of Newman''s stock in Seventh Generation resulted in much needed
finance for the new company ''Magic Hat Brewing Co.''. By 2004 Magic Hat
employed 50 members of staff, and had a best-selling brand of apricot-tinged
pale ale. The company sponsors several arts and music festivals in Burlington as
well as other concerts across New England, and promotes various causes such as
rape prevention, AIDS awareness, and safe sex, in particular issues that are
often linked to alcohol use[4]. Hollender continues to pursue market penetration
for Seventh Generation products in mainstream America. Seventh Generation''s
prices are often approximately one dollar more than mainstream brands, however
the products have attracted customers willing to pay a premium. Hollender
continues to hold to original company values in terms of in house employee
management practices. In 2003 Seventh Generation published its first Corporate
Social Responsibility Report, documenting successes, and also outlining ways in
which the company had fallen short of its ideals[5].With recent political change
in America, Hollender became part of a group of advisors to Obama''s
administration on environmental and sustainability issues. Having seen over 30%
growth each year in America since 2001, Seventh Generation is now launching its
products in Britain and Ireland, and in 2009 began working with Wal-Mart to
sell Seventh Generation products in their
stores[6].
Today the company website states its
commitment to becoming a worldwide trusted brand, which offers customers the
opportunity to make ''a difference by saving natural resources, reducing
pollution, keeping toxic chemicals out of the environment and making the world a
safer place for this and the next seven generations''. The company currently
sells brand-name products such as bathroom and facial tissues, non-toxic
phosphate free cleaning and laundry products, chlorine free baby products. The
company also dedicates 10% of its profits to non-profit organisations[7]. In
2006 Hollander wrote a book ''What Matters Most the story of Seventh
Generation'', and Newman reportedly challenged him for repeatedly referring to
himself as the founder. Hollender subsequently edited portions of the book[8].
However there still appears to be misconceptions regarding the founder of
Seventh Generation, in 2009 for example the UK Sunday Times referred to
Hollender as the founder[9]. The company website does not mention Newman, and
refers to Hollender as the
co-founder[10].
Sources:
[1] Berle, G. (1991) The Green Entrepreneur: Business
Opportunities That Can Save the Earth and Make You Money. United States,
Liberty Hall Press.
[2] McCuan, J. (2004) Its Not Easy Being Green, Inc., November,
p.110.
[3] McCuan, J. (2004) Its Not Easy Being Green, Inc., November,
p.110.
[4] McCuan, J. (2004) Its Not Easy Being Green, Inc., November,
p.110.
[5] McCuan, J. (2004) Its Not Easy Being Green, Inc., November,
p.110.
[6] Rushe, D. (2009) Eco firm is riding high in Obama revolution,
The Sunday Times (London), 15th February, Business Section,
p.11.
[7] Seventh Generation (2010) About Seventh Generation | Seventh
Generation [online].
[8] McCuan, J. (2004) Its Not Easy Being Green, Inc., November,
p.110.
[9] Rushe, D. (2009) Eco firm is riding high in Obama revolution,
The Sunday Times (London), 15th February, Business Section,
p.11.
[10]
Seventh Generation (2010) About Seventh Generation | Seventh Generation
[online]. here to edit.
Sector: Environmental Products
Business Status: Success (temporarily sold to Gaiam, Inc.)
Location: Burlington, Vermont
Website: www.seventhgeneration.com
Status 1991:
Berle described Seventh Generation as a ''well established mail
order company that sells from a colourful 32-page catalog (printed on recycled
paper of course), featuring more than 150 environmentally-benign products.
Numerous ecological information panels (FYI) and pertinent promotions make this
company a national standout'' (Berle 1991,
p.95)[1].
Founding
Story:
After living on a commune in Oregon, Alan Newman and his wife
moved to Burlington in 1970 where he helped launch several entrepreneurial
ventures. In 1988 Renew America; a non-profit which developed and sold energy
saving household products offered to sell Newman their catalogue business, but
Newman declined the offer. Later having failed to find a buyer, Renew America
gave the catalogue business to Newman. Newman renamed the catalogue Seventh
Generation based on the Iroquois saying; ''In our every deliberation we must
consider the impact on the next seven generations''. Later that year, the first
Seventh Generation catalogue was launched offering ''Products for a Healthy
Planet''.
Jeffrey Hollender was raised in New
York. After dropping out of college in 1977, he moved to Toronto where he
founded a non-profit organisation which offered courses such as ''Introduction
to Meditation'' and ''Marxist Thought''. He later returned to New York and
founded a for-profit version, which included courses such as ''How to Lose your
Brooklyn Accent'' or ''How to Marry Money''. In 1985 Warner Communications
bought the business for over $2 million, and Hollender became the head of
Warner''s new audio book division. He later left Warner to write a book called
How to Make the World a Better Place. Research for the book led him to Vermont,
where he met Newman[2].
Seventh
generation:
Hollender and Newman met at a time when
sales from the first catalogue had met expectations but the company needed
finance. By early 1989 Hollender had assisted with the development of a business
plan and gained investment for the company, raising $850,000, and an agreement
was made whereby both Hollender and Newman would each own 23% of the company
stock, and Hollender became CEO and chairman. Hollender remained in New York and
commuted to Vermont, and was mainly in charge of financing and product
development. Newman oversaw marketing and day-to-day operations as president. By
early 1990, monthly orders had increased from less than 600 to more than 7,000,
and by the end of 1990 sales of catalogue products reached $7million. However
the economy slowed, the Gulf War was imminent, and by the end of 1991 over 50
workers had been dismissed and Newman decided to take a break from the company.
The end result of this decision was that Newman was never able to return to the
company.
In
1993 on the advice of the board, Hollender took Seventh Generation public. A
deal was also made for the purchase Newman''s company stock. The public offering
raised $7 million, however throughout 1994 the stock price fell sharply, and
Hollender sold the catalogue business to Gaiam, Inc. At the time of the sale the
catalogue business accounted for 80% of company revenue. The proceeds went into
developing new products such as bleach and dye-free household soaps, recycled
toilet paper and other recycled products. In 1999, with the financial help of
friends and on the advice of the board, Hollender bought back Seventh
Generation.
The
board refused to allow Newman to rejoin either the company or the board. Newman
subsequently launched a beer brewery with a former warehouse manager at Seventh
Generation. The business was initially supplemented by personal funds, however
the sale of Newman''s stock in Seventh Generation resulted in much needed
finance for the new company ''Magic Hat Brewing Co.''. By 2004 Magic Hat
employed 50 members of staff, and had a best-selling brand of apricot-tinged
pale ale. The company sponsors several arts and music festivals in Burlington as
well as other concerts across New England, and promotes various causes such as
rape prevention, AIDS awareness, and safe sex, in particular issues that are
often linked to alcohol use[4]. Hollender continues to pursue market penetration
for Seventh Generation products in mainstream America. Seventh Generation''s
prices are often approximately one dollar more than mainstream brands, however
the products have attracted customers willing to pay a premium. Hollender
continues to hold to original company values in terms of in house employee
management practices. In 2003 Seventh Generation published its first Corporate
Social Responsibility Report, documenting successes, and also outlining ways in
which the company had fallen short of its ideals[5].With recent political change
in America, Hollender became part of a group of advisors to Obama''s
administration on environmental and sustainability issues. Having seen over 30%
growth each year in America since 2001, Seventh Generation is now launching its
products in Britain and Ireland, and in 2009 began working with Wal-Mart to
sell Seventh Generation products in their
stores[6].
Today the company website states its
commitment to becoming a worldwide trusted brand, which offers customers the
opportunity to make ''a difference by saving natural resources, reducing
pollution, keeping toxic chemicals out of the environment and making the world a
safer place for this and the next seven generations''. The company currently
sells brand-name products such as bathroom and facial tissues, non-toxic
phosphate free cleaning and laundry products, chlorine free baby products. The
company also dedicates 10% of its profits to non-profit organisations[7]. In
2006 Hollander wrote a book ''What Matters Most the story of Seventh
Generation'', and Newman reportedly challenged him for repeatedly referring to
himself as the founder. Hollender subsequently edited portions of the book[8].
However there still appears to be misconceptions regarding the founder of
Seventh Generation, in 2009 for example the UK Sunday Times referred to
Hollender as the founder[9]. The company website does not mention Newman, and
refers to Hollender as the
co-founder[10].
Sources:
[1] Berle, G. (1991) The Green Entrepreneur: Business
Opportunities That Can Save the Earth and Make You Money. United States,
Liberty Hall Press.
[2] McCuan, J. (2004) Its Not Easy Being Green, Inc., November,
p.110.
[3] McCuan, J. (2004) Its Not Easy Being Green, Inc., November,
p.110.
[4] McCuan, J. (2004) Its Not Easy Being Green, Inc., November,
p.110.
[5] McCuan, J. (2004) Its Not Easy Being Green, Inc., November,
p.110.
[6] Rushe, D. (2009) Eco firm is riding high in Obama revolution,
The Sunday Times (London), 15th February, Business Section,
p.11.
[7] Seventh Generation (2010) About Seventh Generation | Seventh
Generation [online].
[8] McCuan, J. (2004) Its Not Easy Being Green, Inc., November,
p.110.
[9] Rushe, D. (2009) Eco firm is riding high in Obama revolution,
The Sunday Times (London), 15th February, Business Section,
p.11.
[10]
Seventh Generation (2010) About Seventh Generation | Seventh Generation
[online]. here to edit.