Clorox to acquire NC company Burt’s Bees
Interesting business notice in the Stars News yesterday:
RALEIGH | In its infancy, Burt’s Bees served as a niche developer for the earth-friendly consumer. Now, courted by household goods giant Clorox, it’s going mainstream with nearly a billion-dollar price tag.
Clorox, the maker of its namesake bleach, Brita water filters and other grocery-store name brands, said Wednesday it would buy Burt’s Bees for $925 million. That announcement marks a new stage of breakneck growth for Morrisville-based Burt’s Bees, which has developed a line of more than 150 natural beauty products, such as lip balm and hand cream.
And here Burt’s Bees was one of the recipients of the North Carolina Sustainability awards we mentioned here a week or so ago.
This is just the most recent and perhaps the biggest in a land-grab of green products by the big household companies—Proctor & Gamble, et al. Suddenly no brand portfolio is complete without environmentally-friendly and socially-conscious products. Marketwatch, speaking about this trend, also mentions the signal acquisitions of Body Shop by L’Oreal and of organic yogurt brand Stonyfield Farm by Danon:
The deal, valued at $925 million in cash, is part of a broader effort by Clorox to grab market share in what it calls two major consumer trends: so-called green products made to do less harm to the environment, and made with natural ingredients that are better for consumers.
Kinda gives you the cynical-willies. But probably this trend is a good thing. It does seems like some products whose methods and output were unhealthy are beginning to change for the better categorically—like milk, two of whose major producers have agreed (and now I can’t find the link) to stop using BGH as a concession to a market that’s wearing green-colored sunglasses, and has been sensitized to health (or at least “health”) in a big way.
Not terribly ironic that a California company (Oakland to be exact) would snap up Burt’s Bees. It likes to think it’s cutting edge but there are limits to the amount of sexiness that can be obtained from a container of bleach.
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Hmmm… the cynical-willies indeed. As a matter of fact, if this sort of market-colonizing is in fact a “trend,” it is one that worries me deeply. My question is (and surely there’s someone in the grove who can argue/enlighten this better than me) not so much in regard to whether or not the big-dogs are actually trying to improve their product… or simply trying to clean up their chemical image by adopting green-concscious companies. It’s this: why absorb the little guys who ARE making a difference? Why not clean up from the inside out? Surely they have the capital and the resources… Clorox made this move b/c acquiring BB’s is the most profitable and easiest move in a push to change the cards for their own “good.” In short, households don’t win out here…
Am I being obtuse and severely anti-, or … ?
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This trend is troubling because it’s happening in so many businesses. Rupert Murdoch taking over The Wall Street Journal is just more indication of a larger move toward conglomeration and fewer choices (it’s no secret that most if not all of his publications lean far to the right). On a personal level, Lands End’s once quality clothing are now barely distinguishable from Sears, which acquired it a few years ago. This is the fear: that the company taking over will not keep standards that were once appreciated by consumers. My Burt’s Bees lip balm will taste a whole lot different with the acrid taint of Clorox on the label, hidden or otherwise. My cynical-willies side says that most of America doesn’t pay attention to this stuff and the conquering companies will turn a profit even after watering down the product. Here’s a link to a story that has similar repercussions:
http://www.nytimes.com/2007/11/04/opinion/04pollan.html?em&ex=1194411600&en=0a40e8efe1e96aef&ei=5087
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Totally agree, fellow sea-willies. But I do think that good things can sometimes come about by way of dubious intentions.
It obviously wasn’t altruism, for example, that got Starbucks vested so heavily in the organically grown, fair trade coffee that now makes up a good share of their sales. Nor is it their love of authentic indigenous American art forms that has them playing John Coltrane every morning. But there those good things are!, good in untold good measure, all because Starbucks seem to need to continue festooning itself with local Seattle cafe society vibe. Maybe it’s conquerors’ guilt.
Ditto Prius cars and J-lo (or whoever), Madonna’s kabballah (sp?), Camper shoes, what have you.
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This just in: Clorox gets the OK to buy Burt’s Bees:
http://www.wwaytv3.com/clorox_gets_ok_to_buy_burts_bees/11/2007
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