Our vision is to create a business that is good for the planet and good for the health of its people.
- Chris Morrison, Managing Director, Phoenix Organic ltd[1]
Introduction
Tension between a desire for continued growth for a company and an emphasis, within that company for a sustainable approach to business, is nothing new. Such tensions are at the heart of sustainability and the conflict between, what Nick Brooks calls, “the so-called “environmental movement” and the supporters of rapid economic globalization based on corporate capitalism.”[2] Mr. Brooks, writing for the Tyndall Centre for Climate Change Research, goes on to say that, the philosophy of “growth at all costs is currently most strongly associated with “sink or swim” capitalism in which individual enterprise is sacred and in which the proper role of the state is to facilitate innovation rather than provide for the needy.”[3] This philosophy is characterized as one of two extremes in the debate between growth and sustainability. The other extreme, is what Mr. Brooks calls, the deep green model. This model is based on the notion that “humanity should coexist with nature and have as little impact on the Earth as possible. In contrast with the maximum growth philosophy, in which consumption and innovation form a virtuous cycle, consumption is minimal and innovation is regulated, viewed in purely utilitarian terms. As opposed to constant change in pursuit of linear progress, the deep green philosophy seeks an equilibrium between humanity and the natural world, and is therefore based on stability rather than change.”[4]
Case Study: Phoenix Organic
The Natural Step, a Swedish Non-profit that is “dedicated to education, advisory work and research in sustainable development” had this to say summary of Phoenix to say. Beginning in 1985 when Chris Morrison purchased a ginger beer bug from a friend, Phoenix originally “would collect empty beer bottles from pubs, soak them in the bathtub, and then take them to a local café for sterilizing. Finally the bottles were filled with ginger beer and left for a week or two to ferment. The original product was label-free and sold in local cafes and health food shops. During the first year Roger Harris joined Phoenix and the ‘Ginger Fizz’ line was born. Ginger Fizz, a naturally fermented beverage, had a mind of its own and was quite often determined to get out of the bottle before the top was cracked! The original vision for Phoenix products was to produce and distribute only organic food and beverages. Unfortunately there was neither the demand from consumers nor the supply of raw materials to sustain this vision. A compromise was reached by producing the best possible alternatives - that being organic wherever possible, but with the bottom line of being 100% natural.”[5]
Valuing Sustainability – Growing your Business
According to Case Studies in Sustainability Management and Strategy: The oikos collection, “by May 2004, Phoenix Organic had grown from its bathtub beginnings with its ginger fizz product 17 years earlier to become New Zealand’s leading manufacturer of premium certified organic and natural beverages. It had done so while living up to its founders’ vision of creating “a business that was good for the planet and good for the health of its people.” Yet, despite a growth rate of 25% over the last three years, sales were still only NZ$6.5 million. Having carved out a strong niche in the New Zealand non-alcoholic beverage industry, the question was how to produce future growth—through new products such as the chai Phoenix had launched, through new channels such as supermarkets, through developing overseas markets such as Australia or Malaysia, or through some combination of all of these strategies? The challenge focuses on how to combine economic growth with the Phoenix philosophy: being good for the planet and also good for people’s health.”[6]
The Bottom Line(s)
Despite the exceptional growth that Phoenix Organics was experiencing, “Social and environmental sustainability was one aspect of the business that Morrison, also Chair of New Zealand’s Sustainable Business Network, was unwilling to compromise on.”[7] Authors Eva Collins, Steve Bowden and Kate Kearins go on to say that “even in the bathtub days, the three founders always tried to make their products in an ethical manner, providing a healthy, natural premium product with the least impact on the environment. They believed that the market had caught up to their early thinking. “In the last 10 years we’ve seen more interest from the market in things that are important to us – safety, accountability, values, integrity and sustainability,” Morrison said.”[8] Over the years, as Phoenix’s sustainable business strategy evolved it sought structure for its continued growth. In 1999 Phoenix was introduced to The Natural Step and later that year became the “first company in New Zealand to adopt The Natural Step framework for sustainability and have used this to guide decision-making”[9] ever since.
Conclusion
Since its beginnings back in 1985, Phoenix has made some notable achievements in the field of sustainable business management. With clear intent and desire to both understand and implement sustainable strategies in its company, Phoenix has shown what even a small company can do to make a difference in the business world and the issue of sustainability. Even more notable is the company’s continued commitment to sustainability at every stage of the growth process. Challenged with the seemingly incongruous parallel of a company’s desire to pursue sustainability and a need for financial growth, Mr. Morrison sums up this point by saying “I believe that there are some significant issues related to sustainability for business that get beyond a certain point.”[10] Despite, or perhaps in-spite of these ‘significant issues’, Phoenix has been able to balance these equally challenging tasks and emerge both a pioneer in sustainable business integration for New Zealand, but also a successful international business.
[1] http://www.naturalstep.org/sites/all/files/TNS_Phoenix_Organic.pdf [2] http://www.nickbrooks.org/publications/TynBNote08.pdf [3] http://www.nickbrooks.org/publications/TynBNote08.pdf [4] Ibid. [5] http://www.naturalstep.org/sites/all/files/TNS_Phoenix_Organic.pdf [6] Hamschmidt, Jost, ed. Case Studies in Sustainability Management and Strategy: The oikos collection. Sheffield: Greenleaf Publishing, 2007. Page 19 http://www.phoenixorganics.co.nz/ [7] Hamschmidt, Jost, ed. Case Studies in Sustainability Management and Strategy: The oikos collection. Sheffield: Greenleaf Publishing, 2007. Page 60. [8] Hamschmidt, Jost, ed. Case Studies in Sustainability Management and Strategy: The oikos collection. Sheffield: Greenleaf Publishing, 2007. Page 60. [9] http://www.naturalstep.org/sites/all/files/TNS_Phoenix_Organic.pdf [10] Hamschmidt, Jost, ed. Case Studies in Sustainability Management and Strategy: The oikos collection. Sheffield: Greenleaf Publishing, 2007. Page 52.
