It is unleashing a slew of products that will increase its
already-hefty item count by more than a third, to 240. And it's
preparing in August to launch an "Inciteful Insights" campaign from
Colangelo in Darien, Conn.
The push will run primarily in digital and social media. Along
with revamped packaging, it will call attention to the proportion
of bio-based (as opposed to petroleum-based) ingredients in Seventh
Generation's products to help point out what natural products are
all about, said CMO Joey Bergstein.
Preceding the revamp and what appears to be a nascent rebound,
Seventh Generation had more than its share of boardroom drama for
an eco-minded company based in pastoral Burlington, Vt.
Mr. Hollender's successor as CEO, former Gatorade executive
Chuck Maniscalco, offered his resignation in late 2010, a little
over a year after taking the job. Mr. Hollender, who had remained
as a board member, was then forced out by the board, which had just
secured $30 million in private-equity capital. The board then hired
Mr. Replogle, a Unilever
veteran who helped sell Burt's Bees to Clorox Co. and stayed on to run the
business under its new owner.
Mr. Hollender declined to comment, and Mr. Maniscalco, now
VP-strategic initiatives at Champlain University in Burlington,
didn't return calls or email for comment. But Mr. Replogle said
that "Jeffrey Hollender did a wonderful job of creating and
sustaining a vision that made it a lot easier for me to step in and
figure out a strategy for the next generation of Seventh
Generation."
"Anytime you lose ... a founder, an organization goes through a
period of introspection," he said. "I was kind of fortunate in that
it was almost parallel to the situation I came to at Burt's Bees.
... I followed the CEO, who followed the founder in both
situations."
Mr. Replogle said he believes Seventh Generation got off track
in part because it focused too much on mass media-TV
advertising.
The new emphasis, said Mr. Bergstein, is on digital and social
media aimed at interaction with the brand's often-fervent
following. There's also a shift away from print in the coming
campaign.
Appearances aside, Mr. Replogle said he's not out to flip
Seventh Generation a la Burt's Bees. Unlike Burt's Bees, Seventh
Generation has "patient capital" that 's not pushing for a quick
sale, he said, adding that other stakeholders in the business,
including employees, have the final say.
Seventh Generation is in it for the long term, Mr. Replogle
said. As in really long term, which is where the roots revival
comes in. "Our mission is to create a consumer revolution that
cares for the health of the next seven generations," he said. "We
do define ourselves as a health company, with the firm belief that
you can't live a healthy life on a sick planet."
The new Seventh Generation team is also out to rekindle growth.
It's been lagging design-focused competitor Method in recent years
despite a green-packaged-goods market that 's generally been
outgrowing the mainstream business.
Those efforts seem to be working. Amid management transition
last year, Seventh Generation's sales grew 2%, to $82 million (not
counting Walmart, where
it's also distributed), as many of the categories where it competes
shrank, according to SymphonyIRI data.
For the 12 weeks ended April 15, Seventh Generation's growth
accelerated. It was up 15% vs. the year-earlier period, to $20
million. That increase came as Seventh Generation focused marketing
efforts on a tie-in with Universal's "The Lorax."
Mr. Bergstein acknowledged the film's brand tie-ins generated
some backlash among green consumers who thought Universal was
selling out to corporate interests. But he said he thinks the Dr.
Seuss book and movie are perfect fits with Seventh Generation and
that the promotion appeared to bear fruit for the brand, even if it
had some explaining to do to some fans.
A message on Seventh Generation's website defending the use of
the Lorax character on the brand's diapers said the licensing deal
wasn't "intended to directly market the movie itself. ... We
simply thought it would be a fun way to encourage family reading
and environmental awareness while creating a few smiles."
While the deal attracted detractors on Seventh Generation's
Facebook page, Mr. Bergstein said it got at least equally strong
defense from other fans of Seventh Generation and "The Lorax."
"It was controversial, but for us it was successful," Mr.
Bergstein said. "In terms of market share, Q1 was the strongest
quarter we've had yet." Seventh Generation's "Lorax" hashtag also
became a Twitter trending topic twice and was well received by mom
bloggers, said Seventh Generation spokeswoman Brandi Thomas.
More broadly, green household products are enjoying a rebound.
Much of the category's growth comes not from hardcore dark-green
consumers but less-committed "light-green consumers making better
decisions," Mr. Replogle said.
"The big question for us is , "How do we broaden the story
beyond just being green?' " Mr. Bergstein added. "Our team has done
a great job in recent years really upgrading the performance of
these products so people don't think they have to make a
tradeoff."
As part of the brand's biggest product expansion perhaps ever,
it's rolling out more than 60 items, such as a superconcentrated
laundry detergent packaged in recycled cardboard and lines of
baby-care products. There's also laundry and cleaning products
designed for use around infants—a major consumer need that 's
underserved, Mr. Bergstein said.
Those roots, they keep bearing offshoots. Though gone from
Seventh Generation, Mr. Hollender is not forgotten. In the Triple
Pundit blog, he recently lashed out at Walmart, one of the brand's
biggest customers, for alleged foot-dragging on sustainability.
Mr. Bergstein said the brand's relationship with Walmart remains
strong.
