Burt's Bees is Purchased by Clorox
by Kara DiCamillo, Newport, Rhode Island on 11. 6.07
We at TreeHugger have been big fans of Burt’s Bees. We first covered them a few years ago and this past summer we wrote about their Greater Good campaign and additionally we spoke with Mike Indursky, the company’s Chief Marketing Officer. But admittedly, we never saw this one coming. Last week Clorox announced that they will be purchasing the privately held company for a whopping $925 million – in cash.
"The Burt's Bees brand is well-anchored in sustainability and health and wellness, and we believe it will benefit from natural and ‘green’ tailwinds," said Clorox Chief Executive Donald R. Knauss. Hmm, could this be a case of greenwashing because consumers prefer natural products these days? On the same day of the announcement, Clorox said that its first-quarter profits fell to $111 million, or 76 cents per share, from $112 million, or 73 cents per share, a year ago. Knauss continued, “It's in an economically attractive category with a margin structure that will be highly accretive to Clorox.”
We’re curious to see if consumers will still support the North Carolina-based company. See our survey on sell-outs. Via ::Forbes.com
“It's in an economically attractive category with a margin structure that will be highly accretive to Clorox.”
god, i hate econo-speak. all he needed to add was something about 'leveraging a new synergistic paradigm'.
I always had reservation about their products, with the honeybee crisis and all. Maybe Clorox can develop a synthetic beeswax that will be bleach based and completely environmetally safe (wink wink)....while more importantly stuffing the pockets of big business. What a shame...
I hate these comments: consumers prefer natural products
When did someone get the bright idea that natural = safe and good for you?
crude oil = natural
lead = natural
arsenic = natural
chlorine = natural
uranium = natural
Natural, in and of itself, is a greenwashing term, and I'm effing sick of it.
We’re curious to see if consumers will still support the Maine-based company.
They've been based in North Carolina for the past 14 years.
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Writer's note: Yes, you are correct! They got their start in Maine before moving to NC. Thanks for pointing that out.
The company has operated out of one of the Carolinas for years now. Moved in pursuit of cheaper labor, if I recall rightly. Funny how long-lived that Maine cachet is, huh?
I don't really see a problem with this, as long as Clorox continues to follow Burt's Bees' original mission.
This is really sad. I used Burt's Bees because I liked the idea of supporting a smaller (if that's really a thing anymore) company that promotes goodness in health. When Tom's of Maine sold their company to Colgate I quit using their products and I will do the same for Burt's Bees. I believe you vote what you believe through your dollars and even though the products may be made the same way, the company now getting the money doesn't support what I believe through their other products.
I've been using their products for nearly two years and am very happy with their quality, but I can't in good conscience continue to buy them after this. :(
i once got bit by an organic free range snake!
If Clorox uses Burt's Bees products so they're less dependent on their toxic chemical business, than that's good. If this means fewer toxic chloroflourocarbons in their products, that's good. I would likely be pessimistic about that. After all, Philip Morris and RJR diversified in their day, but that doesn't mean fewer tobacco products were being sold.
This could also, however, be read as a signal that Clorox is becoming aware of its potential exposure to increasing environmental concerns in the market. If this is a way for Clorox to phase out the use of such hazardous chemicals, than that's good.
Forget it. I'm tired of chasing brands around. I'm tired of sell-outs. I don't stand up to applaud Bush when he says alternative energy is a good idea, and I won't reward polluters for absorbing a clean company. I was once optimistic, but now I smell the truth. These big companies aren't interested in the heart of the businesses they buy, only the market share. Gag. There are way too many small companies making fantastic products to give my money to a mega-corps. If a coal-burning power plant buys an organic farm, I'm not interested in supporting that. If Toyota makes the biggest and most powerful truck in its class, I'm not interested in their Prius.
I'm getting all fire up now...
@Anonymous:
Hear, hear! I think the same way when I see a huge Toyota truck. How to reconcile this with the Prius?
For the megacorps, it's about the market and the profit, not about the product. Toyota sells the big trucks because people (in the US) will buy them.
Buy small, buy local.
Ah, that's a real shame. Has this kind of thing ever turned out well? It's too bad companies like this and Tom's Of Maine couldn't just get together and form their own corporate giant, rather than being absorbed and diluted by others.
I just hope that Clorox doesn't change the Burts Bees lines or cheapen the product! For one who has sensitive skin, Burts Bees is one of the few products I am not wholly allergic too. I have had to already change many of my bath products because companies have changed the ingredients.
By the way - I am horribly allergic to Clorox bleach products, so hopefully they don't get to close to eachother!
I've tried many of Burt's products but wasn't really pleased with any of them except their body lotion. Now I'll find another option. I certainly won't support Clorox in this endeavor.
I guess I'll have to finally experiment with making my own lotions from olive oil, almond oil, essential oils, etc. I've actually tried the olive oil for hair conditioner and as long as you use only a small amount and rub it into your hands first, then lightly on your hair - it works pretty darn good. I'll bet coconut oil would be nice too. I was afraid of the smell but it wasn't very powerful in such small amounts.
I can't decide if this is good or bad. If it makes it easier to find Burt's stuff, maybe good. But does Clorox do animal testing? It can't be good for fans of Burt's Bees if their cruelty-free status goes out the door.
I was into their stuff before, but they quit making stuff like toothpaste that I need. I switched to Kiss My Face, maybe the biggest one that is still independent? Tom's stopped making shampoo after getting bought. I hope Burt does not shrink their line, too.
As a former employee at Burt's Bees, I sincerely hope the company culture continues the way I remember it. When I was saving money for grad school I worked at Burt's Bees at their first NC location on Brownleigh drive for a couple of years. I was primarily in the shipping dept, but also did phone support, packaging, and manufacturing. At the time there was a very wide range of people from different socio-economic backgrounds, but everyone still sat down and ate lunch together. Even Roxanne, the real boss (Burt was just the figurehead) was very down to earth and hung out with us. It was also very nice to not be exposed to harsh chemicals back in the lab and coming home everyday smelling nice...
I dropped their brand a while back after they started using more plastic in their packaging. Lame
@chs:
If by "natural" you mean "any compound that occurs in nature," then the only thing on your list that qualifies is crude oil, which I've never heard anybody call un-natural. None of the other things occur naturally in their pure forms (at least not with any frequency), and in their natural forms nothing on your list is terribly useful or dangerous. You're not going to find a battery for your car made with "natural" lead, nor can you start your car's engine with "natural" gasoline. Neither can you generate electricity or set off explosions with "natural" uranium, nor can you treat your pool with "natural" chlorine (unless you want a saltwater pool). ALL of the things that you use in those scenarios require the use of materials EXTRACTED from naturally ocurring compounds by artificial (by which I mean "not observed in nature") processes.
Now if by "natural" you mean "anything composed of atoms that can be found in nature" then what, exactly, would you describe as "artificial" or "un-natural"? Or do you have a different definition of "natural"?
that really sucks I enjoyed there products...but being that clorox tests on animals that goes against my consumer ethics... thats a shame
Good for Burts Bees. They made a product that is successful and someone bought them. Is Treehugger a sellout because they sold out?
Hey, about the Prius thing...im just curious, trying to keep up with being environmentally friendly is exhausting...so you're saying that you don't want the Prius because Toyota also sells big trucks? Doesnt it not make a difference? Isn't the point for you yourself to make the choice to buy a more fuel efficient car, until companys realize this is the biggest market?
Good for Burts Bees. They made a product that is successful and someone bought them. Is Treehugger a sellout because they sold out?
Give it a rest.
very reminiscent of unilever's purchase of ben & jerry's ice cream.... which has since lost any magic previously held for me. same for burts bees now!
shocking.
Burt's Bees has now lost me for good...and i've been a fan for a long time. My hard earned money will not be given to Clorox through the vein of any "natural" product. I'll move one to a new lip balm and i'll find a new tomato soap -- or maybe even just make some myself.
Who is Clorox? A strapline would help (e.g. "Clorox, the people who make..." or something) Some of us are reading this from overseas...
Candy...
Clorox built the first large scale bleach factory in the US. They are best known for their bleach and household cleaning products. But they also own Brita water filters, Glad trash bags..and now Burt's bees. As well as many other well known/used American household products.
While it's water under the bridge, why aren't we bashing the company who sold out to Clorox here. Seems ole Burt (Roxanne Quimby) is ready to go sailing off and leave her pride and joy to the whims of an old man company looking for a fresh young thing. Huge corporations don't just happen. Sure, they have their strategy to take as much market share as possible, but it takes lots of little companies to be seduced by the big sale of their company to make a corporation a giant. I trust though that Roxanne's interest in land conservation will be well funded and if she can do what she did with Burt's, we'll probably be the better for it and the price of $925 million may set Clorox back a bit for few years. It's just a game of monopoly.
please sir i want my burts bees
Scary, guys, very scary; my advice - buy your Burt's Bees now before Clorox "chemicalizes" them; trust me, I'm very skeptical and uneasy about this whole thing. but i'm keeping my fingers crossed that Clorox DOES do the right thing on this one, as has been speculated in some previous posts.
i though Revlon owned Burt's Bees anyway before this Clorox deal
This is just upsetting. I always felt good using Burt's because i liked the thought of using a small, privatly owned company, opposed to a larger flashy company. well, even though it wasnt completely privately owned or small, it was still nice, but now with a huge company taking over, i dont think i will use the product, but im still debating with myself.
Toms of Maine, Jasons, Burts Bees they have all gone the way of big pocket buy outs. IF you use the products you know they are no longer the same.
In Key West Florida I came across a gal who honestly cares about our environment and the products we use. Shes been making natural products for about 10 years. They are awesome.
You owe it to yourself to check it out.
www.keywestseasoap.com
Burt's Bees products are all a hoax at this point. I met this "Mike Indursky" at a tradeshow and he is a sleazy smooth talker who used to work for Garnier (who tests on animals). For them, environmental issues are marketing (which is why Indursky is the marketing guy yet spearheads initiatives) not part of corporate culture. I will never use Burt's products and suggest others do the same. Natural is meaningless and the effort to define "natural" is simply because consumers are easily confused and they want to take advantage of that. The last thing they want is people really learning what is good and what isn't. Clorox tests on animals! And they have to drag Burt out of retirement to put a face back on the company because they are so greenwashed.
"We’re curious to see if consumers will still support the North Carolina-based company. "
um. wouldn't consumers now be supporting Clorox?
once a "green" or "organic" company becomes too large, i tend to doubt their ethics anyway, but a large sellout like this ... well, it is hard to retain what faith was left.
my support would be with the folks in North Carolina who might have minimum wage jobs with the company and may feel on shaky ground right now.
bigger is not better.
Hey, you guys, business is business--always has been. You can bet if it;s processed, packaged and sold, that the integrity of the natural product has been compromised.
I say, make your own. Remember whole foods! Naturally tended beneficial products! There's your real challenge!
I have MCS (look it up!). I t makes me crazy when I try to keep up with what business is up to. The real fight is to seek out what is good for us locally. Can you wholly live from buying products that are produced within 100 miles from your home? This, to me, is a worthwhile endeavor. Let's save our nerves and hearts for ideas that can heal and nourish us on a local level.
Business is business and when this happens we need to take our business and our money elsewhere. I think Burt's Bees parted from their mission a long time ago, when their products started irritating my skin. I replaced all of my Burt's Bees products with soaps, bath salts, lip balms, etc. that are made locally in Wadsworth, Ohio from a company called Savannah Moon. Everything is handcrafted and 100% natural. That's what I want for my family. These are great products.
www.SavannahMoon.com
Hey Y'all,
Roxanne sold 80% of Burt's Bees back in 2003 for a reported $175 million to AEA Investors, a buyout firm formed in 1969 by the Rockefeller, Harriman, and Mellon families. They buy up smaller companies, increase their sales, and then sell them off. They're stated purpose is "to make a small groups of rich investors even richer." Their investors have included CEOs from AT&T, GE, GM, and IBM.
Mission accomplished. They just sold it to Clorox for $925 million! Four years - $750 million for the Rockefellers, Harrimans and Mellons.
And all y'all who've been buying Burt's Bees for the last four years have been participating in helping to enrich that "small group of rich investors."
At issue here is chemicals and the chemical industry.
Unfortunatley, Burt's is/was only one of few readily available product lines that avoids/avoided questionable chemicals and chemical combinations. See: Environmental Working Group's http://www.cosmeticdatabase.com
Moreover, as pointed out in an excellent publication by the good people at SeventhGeneration.com ("Guide to a Toxin-Free Home"), chlorine, its derivatives, and recombinants (eg, dioxin) are some of the most toxic and dangerous chemicals in the environment. There are some 15,000 chloride chemicals in commercial use. The chlorine industry is big business of a scale that must make the buyout figure seem miniscule. ("...FIRST QUARTER PROFITS fell to $111 million...")
As/if consumer knowledge about chemicals grows, greenwashing a chlorine company will be impossible. So maybe the buyout is about diversifying some share of their business away from poisonous substances. More likely, however, it is about keeping consumers within the boundaries of the traditional chemical industry and their toxic personal and household cleaning products.
At issue here is chemicals and the chemical industry.
Unfortunatley, Burt's is/was only one of few readily available product lines that avoids/avoided questionable chemicals and chemical combinations. See: Environmental Working Group's http://www.cosmeticdatabase.com
Moreover, as pointed out in an excellent publication by the good people at SeventhGeneration.com ("Guide to a Toxin-Free Home"), chlorine, its derivatives, and recombinants (eg, dioxin) are some of the most toxic and dangerous chemicals in the environment. There are some 15,000 chloride chemicals in commercial use. The chlorine industry is big business of a scale that must make the buyout figure seem miniscule. ("...FIRST QUARTER PROFITS fell to $111 million...")
As/if consumer knowledge about chemicals grows, greenwashing a chlorine company will be impossible. So maybe the buyout is about diversifying some share of their business away from poisonous substances. More likely, however, it is about keeping consumers within the boundaries of the traditional chemical industry and their toxic personal and household cleaning products.
HI I'M A NEWBIE. NEW TO THE ORGANIC AND RECYCLING. I JUST READ ABOUT BURT'S BEES GOING TO CLOROX. I THINK ITS ALL MONEY. AND TO THE PERSON THAT SAID BURT'S THE ONE SELLING OUT*NOV. 9TH.QUOTE I AGREE!! SHE DIDNT HAVE TO TAKE THE MONEY IF SHE FELT STRONGLY ABOUT HER PRODUCT. TO GIVE THE PUBLIC A NATURAL,ORGANIC PRODUCT.BY THE WAY I USE JASONS FACE PRODUCTS AND TOM'S TOOTHPASTE.. NOW WHAT DO I DO?? : ( ANY RECOMENDATIONS??? D *
As a home-based natural bath/body product maker, this, I think, is good. Maybe now people will look to their local businesses to find natural products and not support the big conglomerates.
Most areas have soapmakers, and if you are allergic, I know I'm more then willing to formulate products especially for customers, I don't see why others wouldn't be, either.
lets hope your products dont go down hill. been a user for many years. Thad
clorox bee's-if production is increased the bees will die-the health of the bee's is more important then most people think.
thing is, clorox and every other large company stated in here are all publicly traded. Clorox's main 'owners' are shareholders...those shareholders are mainly other corporations. Read a book people, and know our history. None of us are self sufficient or free.
thing is, clorox and every other large company stated in here are all publicly traded. Clorox's main 'owners' are shareholders...those shareholders are mainly other corporations. Read a book people, and know our history. None of us are self sufficient or free.