New eco-friendly commerce platform Hive Brands hopes it can be sort of the Whole Foods of sustainable goods, as well as function as the equivalent of the Good Housekeeping seal of approval for ethically made products.
“Whole Foods made mainstream the idea of natural and organic. We would like to do the same for sustainability,” Co-founder and CEO Thomas Ellis told PYMNTS in a recent interview.
Hive Brands launched in October to serve as a platform for sustainable, eco-friendly items, from fair-trade chocolate to toilet paper made from organic bamboo. The site isn’t a marketplace for sustainable-goods companies, but a retailer that buys items from more than 100 manufacturers, typically small startups.
Hive Brands’ co-founders include (left to right): Chairman Scott Morris, Chief Commercial Officer Katie Tyson and CEO Thomas Ellis. (Not shown: Chief Operating Officer Steven Annese.)
The ‘Hive Five’ Rules
All products must meet the company’s “Hive Five” criteria – ingredient integrity (traceable ingredients made with sound practices), recyclable packaging, low-carbon footprint, commitment to social good and a “rave-worthy” product (tastes good or works great).
“Basically, we want to communicate that we’ve done the heavy lifting for [socially conscious] consumers,” Ellis said. “We really make a strong commitment to walking the walk as it relates to getting to sustainable practices.”
For example, 99 percent of all product packaging is recyclable, compostable or “TerraCycle-able.” Hive also boasts that it uses 100 percent recyclable shipping materials, and the company uses carbon offsets to make shipping 100 percent carbon-neutral.
Consumers can search for goods based on either product categories like “Pantry Essentials” or “Snack Foods,” or by looking at the social good that a company champions, from “Community & Economic Development” to “Human & Animal Rights.”
Millennials Want Socially Responsible Products
Such efforts aren’t just nice ideas, but are also good for business.
After all, a Nielsen study has found that 75 percent of millennials are actively changing their consumption habits to help the environment, while 80 percent are willing to pay more for socially responsible products. Nielsen also estimated that the U.S. sustainability market will hit $150 billion this year.
“We really think there’s an opportunity to make people feel good when they shop,” Ellis said. “We want people to feel like they just did a little bit of good in the world, while they happen to also be getting the stuff they need to get by day to day. I think there is a tremendous unlock [to be done] there.”
Abby Noel Davison of vendor Tony’s Chocolonely, which sells chocolates from cocoa beans carefully sourced to avoid child and slave labor, calls Hive “a partner that shares our mission-driven ethos and passion for education, connecting us to a larger community of shoppers who live and breathe our brand values.”
Veteran Management
But while many of Hive’s products come from small manufacturers, Ellis and Hive’s three other co-founders all bring plenty of big-league experience to the business.
Ellis holds an MBA from The Wharton School and worked as a divisional merchandise manager and general manager at Walmart’s former Jet.com business. Before that, he worked in international business development at eBay Digital.
Company Chairman Scott Morris previously co-founded healthy pet food company Freshpet, which went public in 2014 and now has about a $5.7 billion market cap.
Chief Commercial Officer Katie Tyson formerly served as director of integrated marketing and strategy at online mattress giant Casper and director of digital marketing at Freshpet. And Chief Operating Officer Steven Annese worked as director of technology and innovation at Sara Lee Coffee & Tea.
Helping Small Firms Break Into CPG
Ellis said he and his fellow co-founders launched Hive not just to promote sustainability, but also because they know how hard it is for small startups to break into the CPG world.
When he and his wife previously founded a D2C line of sustainable women’s clothing, they “experienced firsthand” the challenge of getting any traction for a new, small brand.
“Retail is broken – in particular for emerging CPG brands,” the CEO said. “There is no destination for these guys.”
He and his Hive colleagues hope to change that while also promoting sustainable products.
“What really drives me at the end of the day is challenging the status quo,” Ellis said. “Just through that innovation, you’re bringing some value to the world.”
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