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Sustainable Innovations Drive Seventh Generation

A business built on the belief that consumers have a right to know what's in their products and that bio-based products are effective and safe.

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By: TOM BRANNA

Chief Content Officer

Seventh Generation's liquid dish sales are posting double-digit gains.

Consumers are reaching for greener cleaners and that’s good news for Seventh Generation. The brand is a pioneer in the environmentally-friendly homecare category. Happi recently caught up with Jami Lewchik, head of product development at Seventh Generation, to discuss trends in the category and how the company continues to innovate.

Happi: According to Circana, US mass market sales of household cleaners rose 4.0% in the past year, led by gains (6.7%) for all-purpose cleaners. But most of the gains came from price increases; volume was up just 0.2%. How has inflation impacted your business? When do you think things will return to normal in terms of raw material costs and retail pricing? What will drive the change?

Jami Lewchik: On the whole, costs have begun to stabilize from the pandemic-induced highs we experienced. Even in this inflationary environment, Seventh Generation has seen volume growth in all-purpose cleaners, and we credit that to our continued focus on meeting people’s needs for effective cleaners that are safe to use around their families and pets. 

Happi: Is there any particular Seventh Generation product or category that has performed well in the past year? Please explain.

Lewchik: Our dish liquid continues to be a bright spot in our business and is experiencing double-digit growth. Our laundry detergent packs and household cleaners are also growing at a rapid pace. We attribute this growth to excellent product performance, increased distribution, new scents and convenient formats that consumers are seeking such as multi-surface cleaning wipes

Happi: Why are consumers buying fewer household cleaners? Is it due to price increases or lingering pandemic-cleaning fatigue? How do you get them to buy more?

Lewchick: As I mentioned, Seventh Generation is experiencing growth in our household cleaners. We are seeing a shift to e-commerce for all of our categories, including cleaners.  

Happi: Oven/appliance cleaners was one of the few categories to post unit sales gains (up 2.6%) in the past year. Why is that and what category or categories are poised to post gains in the next year or so?

Lewchick: We are seeing consumers seek the trend of superior and targeted formats and products that are made for specific tasks, as well as multipurpose cleaning solutions that make quick maintenance easy. For Seventh Generation, our glass cleaner is seeing double-digit volume gain, and we also see consumers appreciating the simple convenience of our multi-surface wipes format, both disinfecting and all-purpose. 

Happi: Are any ingredients in or out of favor with Seventh Generation chemists or consumers? We hear more consumers are reading product labels and prefer non-petroleum-based surfactants. Is that the case? Do environmental concerns play a big role in household cleaning product purchases?

Lewchick: The Seventh Generation business was built on the belief that consumers have a right to know what’s in their products and that bio-based products are effective and safe. As a certified B-Corp we believe that business can and should be a force for good. To that end, we have made hard choices about how we formulate our products, and ensure people have full transparency on the ingredients. For example, quats (quaternary ammonium compounds) are common ingredients in disinfecting products.  Quats are respiratory irritants, in other words, they can cause inflammation in your lungs if breathed in, as might happen when using a cleaning spray. Seventh Generation does not use quats in any of our disinfecting products.

Recent studies by the American Cleaning Institute found that 54% of people regularly look for cleaning product ingredient information, while an additional 24% sometimes look for it. People are also looking for more sustainable cleaning products, including products that are made from plant-based materials that degrade after use. Seventh Generation has high levels of biobased materials in its products (typically above 90% in laundry and dish products, as certified by the USDA BioPreferred program). Seventh Generation requires that every ingredient it uses is biodegradable.

Yes, environmental concerns play a big role in consumer purchasing decisions. A recent Mintel study found 53% of consumers expect companies to “do the right thing” for the environment, and not charge more for doing so.  That is, they expect companies to incorporate sustainability practices as an everyday part of doing business. We fully agree! This is why Seventh Generation participates in the Science Based Targets Initiative’s (SBTi) greenhouse gas reduction program, uses only Roundtable on Sustainable Palm Oil (RSPO) mass balance or PalmTrace certified palm and palm kernel oils, has an average of over 80% Post-Consumer Recycled plastic in our packaging, and designs 98% of our packaging to be recyclable.

Happi: Similarly, does product form play a role in consumer acceptance? Are consumers ready for concentrates? Why or why not?

Lewchick: Seventh Generation believes concentration is vital to lessening the homecare industry’s impact on the environment and is a critical part of our roadmap to achieve a 25% reduction in plastics per use by 2030. Our Ultra Concentrated Easy Dose laundry detergent continues to grow, particularly with online retailers. Our Biobased Laundry Detergent Packs are also experiencing strong double-digit growth due to new scents (and consequent distribution gains) and consumer delight with the format. Concentration is a core pillar of Seventh Generation’s innovation strategy.

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