Purpose Driven Innovations in the Global Beer Sector

The beer category as a whole isn’t really known for its purpose driven messaging. The ‘moderation’ messages are required by law. Stella Artois has had a good drinking water initiative with their partner water.org, and we’ve seen interesting messages about domestic violence in Mexico from Tecate and in South Africa Carling Black Label. But overall, especially in the United States, I’m not recalling a lot of purpose driven messaging.

Two new efforts in South America are notable.Corona beer in Columbia (Corona is owned by Anheuser Busch) is promoting eco-resorts in Columbia as many citizens plan a ‘staycation’ and will not leave the country (the Summer season starts in December). According to Trendwatcher, “As Colombia’s tourism sector is slowly opening back up, this initiative hopes to help rebuild the hard-hit industry in a way that promotes a more responsible and conscious form of tourism. ”

Another beer brand from Brazil, Cervejaria Colorado, is drawing attention to the plight of the rain forest. The brand is committed to biodiversity and the product is made with all indigenous ingredients. They are pricing the beer based on the rate of deforestation of the rain forest. They compare the rate of deforestation in 2020 to the rate in 2019—if deforestation increases, the price of beer increases. If it goes down, the price of beer decreases. According to Trendwatcher, “All proceeds are donated to the Terro do Meio Canteens Network, which includes local farmers and indigenous populations that live in the Amazon and are working to conserve the rainforest. ”

In just a few weeks, consumers saw the price of the beer almost double–from about $1 (in US dollars) to $1.79. During this time, devastating fires continue to burn in the Amazon.

What this does is connect what can be a bit of an opaque event to consumers–deforestation–directly with something that is very transparent to consumers–what they’re paying for beer. It is a different kind of promotion. Will it work? We’ll see.

Chatting with Tommy Hilfiger about a vision for a better fashion industry

Day 2 of Fast Company’s Festival of Innovation–Innovation for Good had me (and thousands of my close friends) hearing from Tommy Hilfiger, the fashion designer.

Tommy Hilfiger is on the left, an editor for Fast Company is on the right.

Tommy Hilfiger defines American style. The brand has worked on becoming more sustainable and innovative. The pandemic and BLM led them to think about how they operate, and they realized they needed to change their strategy.

Covid at first made them change to short term thinking, focusing on associate health and well being and cash flow. The brand then changed to midterm recovery: how do they get out of crisis and build back the business? Sustainability became even more important. The brand did not slow down investment in sustainability—now they are launching a new sustainability strategy.

In September, they announced their ‘make it possible’ strategy for the next ten years. Co-creation process with 100 of associates. Circularity and inclusivity: the brand wants to be a brand that wastes nothing and welcomes all. These two pillars will drive everything they do.

• They have many new styles using organic cotton, sustainable cotton, and low impact finishing techniques.
• Tommy For Life—resale market for used Tommy Hilfiger clothes
• Washing denim pollutes ocean and lakes and streams with poison as indigo dye goes into system and hangs around. They figured out a way to wash denim without water. The denim is broken down (softened and colored) with laser treatments!
• Use fewer chemicals, water and energy in manufacturing.
• On-demand manufacturing—the goal is to have no inventory.
• Using all solar power in their plant in the Netherlands.
• 3D digital design—designs are all done on computer, not wasting time, money, logistics, emissions, materials

Tommy believes that if his company takes the lead on this, other companies will follow.

They are also focused on creating an inclusive workspace and looking after workers’ rights. Workers will have stronger voices in the company. They are also reintroducing “People’s Place”, a platform that the brand will use to bring in BIPOC to mentor them and tap into the Hilfiger network and collaborate with them.

My take–this company says the right things. It has a history of being on the cutting edge, particularly in the digital space. They have made some strides to be more sustainable, and if they can keep up the momentum and show a profit they will be a market leader in sustainability. Cotton is always a problematic fabric, so we’ll see how the continued use of that fabric affects their sustainability.

I’m not as familiar with issues of diversity and inclusion in the fashion industry—my take was that this is one of the more diverse industries but I may be wrong. I’ll do a bit more digging on this aspect and watch to see how they build a better company in this area.