Tools to

Understand Organic Customers and

Create Sustainable Results

SustainabilitySustainability

o Economically viable

o Socially responsible

o Ecologically sound

The PanelThe Panel

o Ivan Storck

o Ed Zimmerman, Ed Zimmerman, FounderFoundero Gene Ruda, PresidentGene Ruda, President

o Michael StrausMichael Straus

The PanelThe Panel

o Ed Zimmerman, Ed Zimmerman, FounderFoundero Gene Ruda, PresidentGene Ruda, President

o Marketing Programso Technology Serviceso Supply Chain Expertise

Retail Market Growth Retail Market Growth SlowingSlowing

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Year Sales at

current prices

Sales at constant

2007 prices*

$million Index % change $million Index % change 2002 1,849 100 - 2,111 100 - 2003 2,198 119 18.9 2,453 116 16.2 2004 2,646 143 20.4 2,877 136 17.3 2005 3,231 175 22.1 3,398 161 18.1 2006 3,943 213 22.0 4,046 192 19.1 2007** (est.) 4,285 232 8.7 4,285 203 5.9

* Adjusted for inflation using the All Items CPI ** 52 weeks ending 7/16/07 (Does not include Wal-Mart)

Source: Mintel/SPINSscan Natural/SPINSscan, conventional ACNielsen ScanTrack/OTA

Market Driver: Organics on the Market Driver: Organics on the MenuMenu

o fine dining segment is the leader - passion/commitment o quick service and fast casual increasing – access and price

QSR5%

Casual dining

33%

Fast casual

3%

Family/midscale

1%

Fine dining

58%

Organic ingredients, by dining type,

Q4 2006

Source: Mintel Menu Insights

Safe (=Organic?)Safe (=Organic?)

Public Concern About Food Safety o 70% very or fairly concerned about pesticide and chemical residueso 68% very or fairly concerned about food borne illnesso 63% very or fairly concerned about the safety of the foods they eat o 52% very or fairly concerned about additives and preservatives. o 50% very or fairly concerned about antibiotics and hormones

Only one-fifth are not at all concerned about pesticide/chemicals and food borne illness.

Michigan State University (MSU) Food Safety Policy Center (FSPC) -Feb 2006

CertitudeCertitude

The PanelThe Panel

o Ivan Storck

Helping emerging green businesses find their home and community on the web

The Panel

o Michael StrausMichael Straus

o Launched first organic dairy West of the Mississippi

o Public Relations focused on Organic, Green, Sustainable, and Renewable

Clients: o Bon Appétit Management Company o Organic Bouquet o Egg Innovations o Clean Fish o Elephant Pharmacy o Sunlight Electric o Planet Organics o King Corn o Community Alliance w/ Family Farmers

The Panel

Our world is one of:o Delicious foods and incredible ideas o Passionate entrepreneurs and corporate leaders o Activists and politicians o Farmers and teachers

From the organic goat herds of southern Armenia and the restaurants of Manhattan, to the wind turbines of Scotland and the socially responsible investors on Wall Street.

Often, the only thing separating them is the idea that they’re separate.

The Panel

The Panel

Panelist QuestionsPanelist Questions

oWith Wal*Mart now the largest retailer of organic groceries, is the organic standard sustainable?

Question 1Question 1

Question 2Question 2

How do you know if companies are authentically “Going Green” or simply “Greenwashing”?In 1999, "greenwash" was added to the

Oxford English Dictionary, where it is defined as: "Disinformation disseminated by an organization so as to present an environmentally responsible public image."

Question 3Question 3

What tools do you recommend to your

clients to create sustainability

?

Question 4Question 4

How can companies leverage the supply chain to cooperate?COHERENT MARKETING STRATEGIES

“Only when the strategy is supported by all theactors along the chain will the initiative be successful. Additionally, marketing strategies need to be built around clear, convincing andcredible claims that send a concise and positive message to consumers.”

--Nourishing Networks - Fourteen lessons about creating sustainable food supply chains by Dirk Roep and Han Wiskerke

http://www.sus-chain.org/

Question 5Question 5How can companies connect to How can companies connect to consumers to create organics consumers to create organics demand?demand?

http://www.msu.edu/~howardp/

Question 5Question 5How can companies connect to consumers to create organics demand?

http://www.msu.edu/~howardp/

O’MarketingO’Marketing

ס Orate an authentic story

ס Online is an advantage

ס Open up to the supply chain

Questions and AnswersQuestions and Answers

Q & Aס

Tools to Tools to

UnderstandUnderstand Organic Customers Organic Customers andand

Create Sustainable ResultsCreate Sustainable Results