[Congressional Record Volume 161, Number 132 (Tuesday, September 15, 2015)]
[Senate]
[Pages S6644-S6646]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
RECOGNIZING VERMONT'S SEVENTH GENERATION
Mr. LEAHY. Mr. President, I want to call the Senate's attention today
to yet another outstanding Vermont business: Seventh Generation.
Seventh Generation unveiled its line of environmentally friendly
consumer household products more than 25 years ago. Today it has
expanded to become one of the dominant businesses in this continuously
emerging market.
I have visited Seventh Generation many times, and I am consistently
impressed with how the company continues to find new ways of expanding
its business and offering Americans affordable and more sustainable
alternatives to standard household products.
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Since 2011, Seventh Generation has seen its business grow year after
year and has unveiled some 100 new products in the last 4 years alone.
President and CEO John Replogle has reinvigorated the company, further
defining its purpose and leadership in the competitive marketplace.
Seventh Generation has long been a company that fosters the business
principles and ideals that so many Vermonters value: to make products
locally, to keep it sustainable, to leave no footprint, and make
products accessible. From its Burlington offices that overlook the
shores of Lake Champlain to the shelves of the retail giants now
promoting its products, Seventh Generation is yet another Vermont
company leading the way in corporate responsibility.
I ask unanimous consent that the August 27, 2015, article from the
Burlington Free Press entitled ``Seventh Generation: `Bursting at the
seams' '' be printed in the Record.
There being no objection, the material was ordered to be printed in
the Record, as follows:
[From the Burlington Free Press, Aug. 27, 2015]
Seventh Generation: `Bursting at the Seams'
(By Dan D'Ambrosio)
Seventh Generation in Burlington has been on a tear since
John Replogle took over as president and CEO in 2011. Sales
are up more than 60 percent, from about $150 million when
Replogle arrived to about $250 million projected for this
year. Annual growth is in the ``low double digits,'' says
Replogle.
That's a lot of toilet tissue made from recycled paper and
natural, cold-water laundry detergent, not to mention the
dozens of other products in Seventh Generation's expanded
line of ``green'' disinfectants, dishwashing and hand soaps,
surface cleaners, diapers and baby wipes and feminine hygiene
products. Seventh Generation has added about 100 new products
under Replogle.
The company today dominates the market for natural cleaning
products, according to Replogle, who says the other leaders
in the industry are Method and Mrs. Meyers Clean Day.
``Adding our sales together we have a half-billion dollar
business,'' said Replogle. ``I would love to see the three
brands grow to a billion dollars over the next few years.''
In typical Reploglian fashion, Replogle declines to
criticize his two closest competitors in any way, going so
far as to refer to them as ``frenemies.'' And he points out
that the three brands together have less than a 5 percent
share in any category they sell in, leaving a long way to go
before they begin to threaten the Procter & Gambles of the
world.
``What they're trying to do is very much in the spirit of
what we're trying to do,'' Replogle said. ``Use fewer
ingredients, be less toxic, be more sustainable in
manufacturing and packaging. So there's a lot of commonality
among our brands.''
`A really smart dude'
Replogle, 49, is the former president of Guinness in the
United States and United Kingdom. From there he went to
Unilever, where he ran the North American skin care business,
with brands including Dove, Ponds, Caress and Lever 2000.
Next, in 2006, Replogle took the helm at Burt's Bees,
bringing the quirky natural skin care company to the masses.
``We launched at Target, CVS and Walgreen's,'' Replogle
said. ``We built a national brand. I put great people on the
team, and gave them a lot of freedom. We set up core values
and principles to run the company and we invested behind it,
and it took off.''
Which is a pretty good description of what Replogle has
done at Seventh Generation. Alan Newman, founder of Magic Hat
Brewing Co., launched the original Seventh Generation catalog
business more than 25 years ago. Newman has been watching
Replogle from his latest perch in the Maltex Building on Pine
Street, where Newman is running a new craft beer company for
The Boston Beer Co., a.k.a. Samuel Adams. Newman likes what
he sees on the waterfront, where Seventh Generation is
headquartered at Main Street Landing.
``John's a really smart dude who knows how to bring focus
to an organization, who knows how to re-enthuse the
mission,'' Newman said. ``From what I can tell from the
outside, he's a really good delegator and manager.''
In Newman's estimation, Seventh Generation had largely lost
sight of its mission four years ago when Replogle took over.
``I did not pay a lot of attention to Seventh Generation,
but whenever I did they were scattered all over the place,''
Newman said. ``They didn't seem to have any mission left.''
Sales were also flat, Replogle said.
``I just knew this company stood for something greater and
that it needed leadership,'' Replogle said. ``The company was
at a crossroads. We were very nearly at the end of our rope
frankly.''
Replogle began drawing that rope in by putting a laser
focus on what Seventh Generation stands for--natural,
sustainable, environmentally sensitive cleaning products, the
only segment of the retail category showing significant
growth.
``We're really in tune with the consumer today,'' Replogle
said. ``The millennial consumer in particular, people trying
to avoid chemicals, who are more conscious about not only
what's in their product but also the practices of the company
itself. More and more young consumers are understanding the
company behind their product matters. We're winning with
those consumers.''
A pioneer brand
As an example of a best manufacturing practice at Seventh
Generation, Replogle points to the fact that the company
contracts all of its manufacturing to about 22 factories
across the nation. ``You will always have the most
sustainable footprint on a dispersed model,'' Replogle said.
``If we can manufacture closer to the market, we'll do a lot
better. A lot of companies have one large-scale manufacturing
site. Then you have to ship everything in and ship the
products out.'' Second, Replogle said, Seventh Generation
continues to innovate.
``We've upgraded every product in our portfolio in the last
four years,'' he said. ``Every product has been improved in
some material way. We never stop and we're innovating into
new spaces. Plus, we've taken our brand from a few categories
into several categories. We're not only in dish soap and
laundry detergent, we're in hand wash, diapers and wipes and
feminine care. We've gone across all the categories.''
Target has taken notice. Spokeswoman Erica Julkowski said
Seventh Generation is one of a ``handful of vendors'' the
giant retailer works with closely to ``ideate and develop
products.'' ``Seventh Generation is a pioneer brand in
natural cleaning and has been a valued partner to Target by
providing ongoing innovation and thought leadership,''
Julkowski said in an email. ``Through Seventh Generation's
deep understanding of the naturals cleaning industry, they
continue to provide expert knowledge on the market and
insight into up-and-coming products that might resonate with
the Target guest.''
In Seventh Generation's soothing offices overlooking Lake
Champlain--all earth tones and wood paneling with an open
center staircase festooned with greenery and the company's
principles emblazoned on dangling wooden signs--John
Fitzgerald is working on a shelf layout for Target. The
products are dish soaps and detergents.
In the computer generated ``plan-o-gram'' on his big
screen, Fitzgerald proposes a display layout of not only
Seventh Generation's products, but also of Method's and Mrs.
Meyer's offerings, as well as giants like Cascade and Finish.
Finally, Fitzgerald proposes shelf positions for Target's
own house brands, all based on data collected by a third
party.
``Our goal is to be objective, to share the facts and give
them a recommendation,'' Replogle said. ``Our goal isn't to
convince them our way is the right way.''
Nevertheless, working so closely with Target is a pretty
good relationship builder, Replogle adds.
Born here, staying here
Seventh Generation is bursting at the seams at Main Street
Landing, with most of its approximately 140 employees working
in Burlington. Replogle plans on adding another 15 employees
to the staff by the end of the year.
``We have maximized our space in here,'' he said. ``Growth
is a wonderful thing, but right now we're fully utilized in
this building.''
That doesn't mean, however, that Seventh Generation is
going anywhere.
``Burlington is our long-term home,'' Replogle said. ``We
were born here, we're growing up here and will will remain
here. No question. We're committed to that.''
Seventh Generation has a small office in Toronto, and a
satellite office in Raleigh, North Carolina, where Replogle
lived as CEO of Burt's Bees, and where his family still
lives.
When he was recruited to run Seventh Generation, Replogle
and his wife decided against uprooting their four children,
so he has been commuting, returning to his home in Raleigh
every other week.
A native of Boston and a graduate of Dartmouth and Harvard,
Replogle feels he has the best of both worlds, maintaining
his life in Raleigh and returning to New England for more
than a visit. Replogle said it's going to feel even better
when his daughter starts at Dartmouth as a freshman this
fall.
``She'll be right down the road as well,'' he said.
Replogle expects to open an office in California soon, and
earlier this year he launched the business in China with an
office in Hangzhou.
``There's demand for our products over there,'' Replogle
said. ``We're in Japan, Hong Kong, of course mainland China.
We're in Korea, Vietnam, Australia. That's been growing over
the last five years.''
Replogle said Seventh Generation will also be in Europe
within three years.
``How we get there we're still working on right now,'' he
said. ``Whether it's a direct model where we create Seventh
Generation Europe or whether we partner into that market we
haven't determined yet.''
The latest venture
Seventh Generation's office in Raleigh is home to the
company's venture arm, with nine employees who look for new
business opportunities beyond natural cleaning products.
``We created Seventh Generation Ventures about three years
ago with the idea of
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partnering with like-minded companies and helping them
accelerate their growth,'' Replogle said.
The acquisitions began with Bobble, a filtered water bottle
company Seventh Generation bought in 2013. The plastic water
bottle features a replaceable charcoal filter, and sells for
$10, with a new filter that costs about $3. It's marketed as
a way to reduce disposable water bottle use.
Next, Seventh Generation Ventures picked up Presse, a
travel coffee mug with built-in French press, which is being
marketed under the Bobble name. Call it a K-Cup killer.
``This is our answer to Keurig,'' said Replogle, holding a
stainless steel Presse in his hand. ``We looked for mission-
aligned companies like this that are trying to solve a
problem like, end the incredible waste of single-serve water
bottles or, end the incredible waste of K-Cups.''
Seventh Generation Ventures was boosted considerably by a
$30 million investment last September from former Vice
President Al Gore's investment fund, the London-based
Generation Investment Management LLP. Seventh Generation
returned to private ownership about 15 years ago after a
brief flirtation with being a publicly owned company.
The company's nine board members own about 70 percent of
the company, Replogle said, with new shareholders
periodically invited in, and existing shareholders offered an
exit. The $30 million from Gore's foundation was mostly used
to retire existing shareholders who wanted to exit.
``There's a long list of investors and companies that would
love to put their money into Seventh Generation,'' Replogle
said. ``We're pretty fortunate. We have a good thing
happening right now.'' Seventh Generation is also debt-free.
``John has re-energized the business,'' Alan Newman said.
``He has them on clear objectives. He's done the things that
you do to be successful in business.''
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