Can Burt’s Bees Turn Clorox Green?

Background

In 1984 Roxanne Quimb & Burt Shavitz partnered up and began selling beeswax candles harvested from Burt’s honey bees.  They were also dating at this time.  In 1989 Burts got its first large order from a ‘hip’ boutique named Zona in New York.  Forty more employees were hired during this time and production was moved to an abandoned bowling alley.  During this time Roxanne happened upon a 19th century book of home-made personal care products.  In 1991 the company became incorporated during this time, about 500,000 candles, natural soaps and perfumes were being made.  The famous lip balm was first produced during this time.  In 1993 the company moved to North Carolina, the taxes were lower in this state and that influenced the decision to move.  In 1994 the new 18 thousand square foot shop was opened along with a retail store in Chapel Hill, North Carolina.  By 1998 the number of products being made had reached near 100 different personal hygiene items.  In 1999 the company once again expanded into a 105,000 square foot site, which currently now has increased in size to 136,000 square feet.  In 2002 & 2003 the first toothpaste and shampoo products were introduced.  Burt Bee’s value The Greater Good for All means ‘creating a world where people have the information and tools they need to make the highest ethical choices and do the best for themselves, their family and the environment.’

Summary

In the late 1990’s Roxanne and Burt had a falling out that they were unable to overcome and their relationship ended. Roxanne bought Burt’s 1/3 of the company for one hundred thirty thousand dollars.  In 2000 Burt’s Bee’s was pulling in revenues of around 23 million dollars.  In 2003 Roxanne sold 80% of the company to AEA’s for 300 million dollars, she later sold the rest of her 20% to Clorox for 183 million dollars.   Clorox executives hope to take Burt’s Bee’s environmentally friendly ideals and incorporate those values into Clorox’s new ‘Green Works’ line of products.  However it will be difficult for Clorox to pass itself off as ‘Green’ due to the fact that Clorox bleach has chemicals in it that are harmful to the environment.  Clorox executives have been fighting the ‘negative image’ people have about Clorox bleach for years. According to the company 95 to 98% of bleach breaks down to salt and water, the remaining byproduct is safe for sewer systems.  The new line of environmentally friendly products called ‘Green Work’ are all 99% natural, the remaining 1% consists of preservatives and fragrances.  Clorox is hoping to expand its line of products to increase their appeal to consumers who are conscious of the envirornment and the harmful effects cleaning products cause the environment.