Jamie Rector/Bloomberg News

Yesterday a federal appeals court ruled that the lower court judge giving the thumbs up to the merger had in adequately considered the impact the merger would have on consumers. The three-member panel of the United States Court of Appeals for the D.C. Circuit, voted 2-1 that lower court judge, Paul L. Friedman, had rushed a decision in the original hearing. The court ruled that $565 million merger would limit competition and therefore elevate prices for natural and organic foods whereas Whole Foods executives have argued that the merger was necessary in order for the company to compete against much larger competitors like WalMart, Kroger, and Safeway that now sell a large assortment of organic products for consumers.

It is now unclear what will happen if courts determine the merger to be unlawful. Austin, TX-based Whole Foods has already transitioned 27 former Wild Oats stores into Whole Foods stores since the favorable ruling last August. Apparently, the new case has proven to be more than just a legal conundrum for Whole Foods as “documents filed by the Federal Trade Commission revealed that Whole Foods’ chief executive and founder, John P.Mackey, had, under a pseudonym, posted hundreds of messages on financial bulletin boards promoting the company’s stock and criticizing Wild Oats.” (NYT article)

So the real question – will Boise get the 54,000 sq. ft. store we’ve been promised? Whole Foods New Stores List
Also, check out the conversation on SeekingAlpha “Whole Foods: How Many Health Nuts in Boise?”

image from Reuters UK article online 

Today Wal-Mart announced that it has increased the amount of food it purchases locally by 50% in the last two years. The mammoth retailer has plans to increase that number even further in the coming years at a double-digit rate. According to an article in the Reuters UK, Wal-Mart expects to source about $400 million in locally grown fruits and vegetables from farmers across the United States this year.

“When we’re buying local, there are less trucks on the road, less miles that that produce is traveling and therefore less fuel,” said Pam Kohn, Wal-Mart’s general merchandise manager for grocery.”

How does Wal-Mart define “local”?

“Wal-Mart defines “local” as buying from farmers in a state and selling the produce at stores in the same state.”

Sounds like a fair enough definition.

Why does Wal-Mart want to source locally?

The grocery side of Wal-Mart accounted for 41% percent of sales last year for the world’s largest retailer, but rising transportation costs are straining profitability. In the face of the seemingly never-ending increase of energy costs, Wal-Mart is hoping to reduce the transportation costs to retain the profitability of its grocery business.

Wal-Mart says that during the summer months locally sourced fruits and vegetables make up approx. one-fifth of the produce available in Wal-Mart stores. In the United States, Wal-Mart believes that produce travels an average of 1,500 miles from farms to consumers’ homes. By sourcing locally, Wal-Mart hopes to eliminate millions of “food miles” and says that it has already saved 672,000 miles and 112,000 gallons of diesel fuel by sourcing peaches from 18 states rather than just two.

Last year 10 retailers joined with the U.S. EPA to launch an eco-friendly program dubbed the GreenChill Advanced Refrigeration Partnership. According to our Dec. 10 post about the program,

“Refrigeration consumes massive amounts of energy for retailers and brands and the writer of the article on Greenbiz.com wrote that “someone once told me that Wal-Mart’s second-biggest cost (after people) is energy, and that its biggest energy cost is refrigeration.”

Today the Green Chill program membership has nearly tripled to 28 members that have saved approx. $13 million in operating costs and avoided some 2.5 million metric tons of carbon dioxide from being emitted. Upon joining, members must “determine a baseline measurement of corporate-wide refrigerant emissions from 2007 and embark on a reduction plan this year.” Nineteen of the Green Chill program members are supermarket chains that are reducing emissions by preventing leakage by improving equipment tightness at install and retrofit. The Partnership is also helping many of the retailers take a look at converting to new equipment that uses advanced refrigeration technologies.

The growth of the eco-friendly program is amazing. When the U.S. EPA launched the The Green Chill Partnership late last November it had hopes of taking one million metric tons of carbon dioxide out of the air, the equivalent of taking 800,000 automobiles off the road every year. Well, according to these numbers, the less than one-year old partnership has already taken the emissions equivalent of 2 million cars off the road.

Sattler Eco & Fair Labor Clothing  

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If you read Rolling Stone magazine you might have noticed a two-page spread promoting Live Earth concerts and the Smartfortwo car, but other than that you have probably never seen any advertisements for the Smart Car. According to Dave Schembri, president of Smart USA, you probably won’t.

According to an article in Brandweek –

“The only U.S. presence [the car] might have is on our Web site,” said Dave Schembri, president of Smart USA, Bloomfield Hills, Mich., the exclusive distributor of the Smart Car in North America and Puerto Rico. “But we aren’t advertising. We don’t need to.”

Apparently anyone interested in the 40 mpg car is put on a waiting list of a few months to buy one of the estimated 30,000 Smart Cars that will sell this year.

Watch one of the coolest ads that is not expected to air in the U.S.

The question you are all asking - how does the 8-foot 8-inch car hold up in a crash? According to an article in MSNBC the vehicle “has a steel safety cage, four standard air bags and electronic stability control.”

“During the National Highway Traffic Safety Administration side test on the Smart two-door, the driver door unlatched and opened. The government said that could lead to a driver or passenger being ejected from the 8-foot, 8-inch vehicle. NHTSA, however, still gave the car its top score of five stars in side testing because of the ability of the car to protect the driver and passenger from injuries in a crash.”

Smart USA President Dave Schembri is displaying the tridion safety cell everywhere he goes to demonstrate the cars safety.

“We’re taking the safety story, and we’re telling it right on the showroom floor every day,” Schembri said. “Because once you walk people through that … you get it, because you can see it. It acts very much like a NASCAR racing cage.”

Neat little car with better mileage than most cars out there - but… no new energy source. It is still powered by gasoline. Something is better than nothing but the auto industry is going through a real overhaul and though this car gets great mileage there are a cadre of automakers producing cars that use alternative energy sources that hold some very serious promise. We’ve talked about several of them - Electric Cars, Alternative Energy Cars, and more on eco-vehicles. If you are into that scene you might check out autobloggreen.com, it will be right up your alley.

Sattler Eco & Fair Labor Clothing

http://www.sattlerclothing.com

                    
Hard to ignore this one. Like many blogs out there we’ve dedicated our fair share of posts to the goings-on at the world’s largest retailer – Wal-Mart. Like this one, this one, and this one.  The other day I noticed an article in the New York Times that suggested that “after waging an aggressive public relations campaign against Wal-Mart for three years, the company’s full-time, union-backed critics, who once vowed to never let up, are putting down their cudgets.” Apparently, Wal-Mart has even “shut down a campaign-style war room set up in 2005 to do battle with Wal-Mart Watch and another group, WakeUpWalMart.com” in the last few months.

David Nassar, the executive director of Wal-Mart Watch stated, “As the company makes changes, it becomes harder to be critical, because our critique has to become more nuanced. But that’s O.K.,’ he added. “We didn’t sign up for an easy job.”

From the New York Times

With that said, there is a book that I have yet to read but that is on my list. It is titled “The Small-Mart Revolution: How Local Businesses Are Beating the Global Competition” by Michael H. Shuman. The product description here on our Sattler Amazon Store reads “Defenders of globalization, free markets, and free trade insist there’s no alternative to mega-stores like Wal-Mart — Michael Shuman begs to differ. In “The Small-Mart Revolution, Shuman makes a compelling case for his alternative business model, one in which communities reap the benefits of “going local” in four key spending categories: goods, services, energy, and finance. He argues that despite the endless media coverage of multinational conglomerates, local businesses give more to charity, adapt more easily to rising labor and environmental standards, and produce more wealth for a community. They also spend more locally, thereby increasing community income and creating wealth and jobs. “The Small-Mart Revolution presents a visionary yet practical roadmap for everyone concerned with mitigating the worst of globalization.”

Sattler Eco & Fair Labor Clothing

http://www.sattlerclothing.com 

Ever since January it has become much easier to get an accurate picture of the carbon footprint of your business. Earlier this year we talked about how to Green Your Supply China, er Chain, but last week IBM Research and IBM Global Business Services announced the release of the Carbon Tradeoff Modeler. The new software is designed to enable organizations to “understand the outcome of critical tradeoffs to make smarter energy choices and better economic decisions by optimizing on service levels, quality, cost, and carbon dioxide emissions”.

The Carbon Tradeoff Modeler will represent to managers the “complex interaction of factors driving supply chain carbon dioxide emissions from both a manufacturing and distribution perspective.”

Using key factors that like packaging options, alternative transportation modes, energy sources, inventory policies, and sourcing policies, the carbon tradeoff modeler generates recommendations to meet reduce both carbon emissions and cost.

“To achieve a carbon efficient supply chain, companies need to assess the CO2 emissions impact of their end-to-end operations,” said Sanjeev Nagrath, Global Leader, Supply Chain Management, IBM Global Business Services. “By incorporating Research-based tools to model the cost and carbon impact of key steps in the supply chain, organizations now can take action to reduce CO2 emissions and influence suppliers’ behavior toward reducing their own greenhouse gas emissions.”

IBM also released “Mastering Carbon Management: Balancing trade-offs to optimize supply chain efficiencies”. According to the IBM Press Release “The paper emphasizes how carbon management, energy consumption and other environmental issues should be analyzed and approached in an integrated manner — evaluating overall performance goals (cost, service, quality and carbon dioxide emissions) in terms of their relationship to one another. A trade-off model looks at these areas and considers relevant factors such as design, packaging and processes. These options represent the “levers” available to influence cost, quality and service, as well as greenhouse gas (GHG) emissions.”

The paper recommends an interesting five-step process to limit the greenhouse gases generated in the supply chain;

1. Strategy: Diagnose, assess, plan and operationalize
2. Carbon asset (facility) management: Implement asset management and realize point solutions
3. Functional Optimization: Address emissions in supply chain functions
4. Internal Horizontal Integration: Find the optimum solution for integrating across functions
5. Collaborative, end-to-end Optimization: Collaborate with supply chain partners to realize overall potential

In the market for a green supply chain software? Not the first company to introduce a software to help supply chain managers identify areas where carbon emissions and costs can be reduced, IBM is probably the largest. Software vendor ILOG, Profit Point and Logility and EPS have all released similar programs in the last 3 months. All three seem fairly robust and detailed enough to allow accurate reporting to shareholders of what is being done specifically to reduce your carbon footprint.

Profit Points’ tool, Green Network, “is a stand-alone planning software package that is used to design supply chain distribution networks that must balance profitability and environmental impact. Green Network can be used to measure your operational footprint while you analyze the placement and location of production facilities, distribution centers, and warehouses over a multi-period planning horizon.” Who uses Profit Point? – Morton Salt, Dole, Sunoco, Georgia Pacific, Bridgestone, and others.

Sattler Eco & Fair Labor Clothing

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Sometimes Renewable Energy…Happens. According to a PRNewswire, “Dean Foods Company today announced that it has begun development of an anaerobic digester on the Big Sky Dairy farm near Gooding, Idaho. The anaerobic digester will capture animal waste from the farm’s approximately 4,700 dairy cows, reducing both odors and emissions of methane gas into the atmosphere. The resulting captured methane will then be used to generate electricity. The project, which is expected to be operational by early 2009, will be owned and operated by a partnership between Dean Foods and AgPower Partners, LLC. AgPower Partners, LLC consists of an affiliate of Andgar Corporation, an affiliate of GHD, Inc. and Cenergy USA, Inc.”

The approximately one megawatt per hour of renewable energy produced from the cow manure will be sold into the local power grid and should provide enough energy to power 650 homes. You’ll never look at cow manure the same. Similar to the paper made of elephant poo, the digester will also produce a sanitary fiber by-product that can be used as clean animal bedding or as organic soil enhancement.

Dean Foods Company is the largest processor and distributor of milk and other dairy products in the U.S. selling dairy products under more than 50 well-known local and regional brands such as Land-O-Lakes, Viva, Meadow Gold Creamers and a wide array of private label products.

So, support renewable energy and find out which brand is sold in your area by visiting their site.

Sattler Eco & Fair Labor Clothing

http://www.sattlerclothing.com

In today’s fluctuating energy marketplace more and more companies are finding competitive advantage by being proactive with energy management. Smart Papers, a 115-year-old paper maker, recently broke ground on a 40-megawatt, $30 million cellulosic biomass energy production facility. The new high-efficiency co-generation power plant is slated to be completed by spring of 2009 and so by the end of the year all brands will be made using renewable energy created at the biomass facility. The biomass will consist mainly of yard waste as well as industrial wood and fiber waste.

Why would Smart Papers do this?

“This move to carbon-neutral production is the centerpiece of our environmental and energy strategies. It enables us to have a future that is completely independent of volatile energy markets,” said Dan Maheu, President and COO of SMART Papers. “We will reduce production costs, make carbon-neutral papers and greatly reduce our greenhouse gas emissions. We will also be a positive contributor to the green power needs of Ohio and the Midwest.”

Mars Snackfood, the makers of Snickers, also recently began powering Texas based candy production with energy created from a Waco, Texas landfill. The project is part of the EPA’s Landfill Methane Outreach Program, a voluntary partnership program aimed at encouraging the recovery and use of landfill gas as a renewable energy source.

Why would Mars do this?

The EPA estimates that this will save Mars about $600,000 a year in energy costs and cut methane emissions equivalent to more than 10,000 metric tons of carbon dioxide since methane is 20x more effective then carbon dioxide at trapping heat in the atmosphere.  

Who else is taking this kind of energy management approach?

Frito-Lay’s Sunchips

The chip factory in Modesto, CA recently installed a five-acre solar field to power its manufacturing facilities. The total 192 solar collectors amount to 54,000 square feet of concave mirrors to capture the sunlight.

REI

In order to meet their objective to be completely carbon neutral by 2020, REI is putting solar electric technology on 11 of its stores this year. The company estimates that the technology will produce approx. 1.1 million kilowatt hours of electricity each year, or about 35% of each store’s energy needs.

“This investment in solar technology will deliver both financial and environmental benefits, helping to contribute to the long-term  strength of the co-op and support our goal to reduce our carbon footprint,” says Brian Unmacht, REI’s executive vice president of Sales, Service, Store Development and Logistics.

With energy becoming an unpredictable factor in the business equation, more companies are trying to hedge their risk by engaging in efforts to minimize their exposure to expensive, non-green energy sources. As Will Sarni, Sustainable Life Media Advisor wrote, “The fact is, energy and carbon management may soon become a core competency for business, just as environmental, health, and safety was brought “in-house” once companies recognized these competencies as critical for successful business operations.”

Sattler Eco & Fair Labor Clothing

http:www.sattlerclothing.com 

        
Chief Executive Michael Dell previewed a desktop PC at the Fortune Brainstorm: Green conference in Los Angeles on Earth Day that will be 81% smaller and use 70% less energy than current minitower Dell desktops. On top of that - the packaging will be recycled. Though Dell doesn’t have a name for the new eco-friendly desktop, Dell plans to make it available by the end of the year.  Read more here.

Green IT

At the same conference Michael Dell addressed the much talked about the greening of our nations IT needs –

“Ten years from now, we will look back and credit ‘green’ IT for helping to mitigate the effects posed by climate change, strengthen global industries and chart a new and prosperous low-carbon economy,” said Mr. Dell. “It’s a historic opportunity that we must act on now.”

 “Connecting with customers, employees and suppliers means understanding and sharing their commitment to green ideas and innovation,” said Mr. Dell. “Today, I’m extending my challenge to every technology company to make the environment both a business priority and daily conversation, from energy efficiency and environmentally-responsible products, to carbon neutrality and free recycling for consumers.”

Dell Wants To Be the Greenest Technology Company on the Planet

According to a recent article “On World Environment Day 2007, Dell announced it would partner with the ReGeneration – people of all ages who care about the environment – to become the “greenest” technology company on the planet. The company has since pledged to become the first in its industry to neutralize the carbon impact of worldwide operations by the end of 2008.

“We are on track to achieve that goal,” added Mr. Dell.

Today, Dell also announced plans to convene a formal ReGeneration Advisory Group to advise and guide the movement. The group will include Alexandra Cousteau, president of EarthEcho International and granddaughter of marine biologist Jacques Cousteau; Chuck Leavell, keyboardist for the Rolling Stones and avid tree farmer and conservationist; and Laura Turner Seydel, eco-living expert and chairman of the Captain Planet Foundation. Dell also will expand the group by extending invitations to other stakeholders and environmental advocates.

The company today also announced five finalists in its International Green Computing Technology Design Competition. Full details on the advisory board and design competition are available at ReGeneration.org.”

Earth Day.

“It’s nearly Earth Day: Time to consume more to save the planet” was how a recent article began in Advertising Age. This year millions of dollars are being poured into Earth Day marketing efforts to reach the “green” consumer. The one-day event started in 1970 seems to have become another flurry of promos and specials akin to Thanksgiving and Christmas with the sound of John Lennon singing over the mall speakers “And so this is Christmas Earth Day…and what have you done..”

“This month I’ve definitely seen a lot of companies that I never would have associated with green popping up,”said Steven Addis, CEO of Addis Creson, a branding firm. “Companies are saying, ‘We need something to green ourselves up, so let’s sponsor Earth Day.’…It’s really now in this hype curve, and hopefully we’re getting toward the top, so we can start having some fallout.”

Some Earth Day promos out there –

- Newsweek subscribers can turn the cover of their April 14 issue into an envelop and send plastic bags to Target in exchange for a reusable tote bag.

- Wal-Mart is running seven national 30-second spots promoting products from t-shirts made of recycled bottles to organic coffee with the tagline “Budget-friendly prices. Earth-friendly products.”

- Banana Republic is donating 1% of sales between April 22 – April 27 benefit the Trust for Public Land.

- Macy’s is offering 10% to 20% off most merchandise to consumers that make a $5 donation to the National Park Foundation.

Steve Addis says “It’s great that people are paying attention…” however, “I call it the 95-5 rule. Five percent of somebody’s business is green, but 95% of their PR is green.”

Are all of these Earth Day promos evil? When Earth Day is made into an EVENT, a one-day thing full of door-busters and loss-leaders to get consumers to buy more, - Yes. Campaigns designed to catalyst more sustainable living or an eco-friendly lifestyle and are not focused on fattening a company’s own wallet will resonate with consumers. The Target and Newsweek campaign I think is a good example.

Ken Rother, president-chief operating officer of TreeHugger admits that “There are some companies that are still feeling their way around and probably greenwashing to some extent” but suggests that “this is the problem of our times, but anything that raises awareness is good.”

Well… - sustainable operations and products breed a sustainable business. Consumers take note and are attracted to authentic sustainability. (Green Companies Attract Customers – read here) So beyond just trying to sell more do yourself, and the Earth, a favor and begin a serious effort to be a more eco-friendly business and living a more sustainable lifestyle.

Either way – it’s still Earth Day. What are you doing to celebrate Earth Day and what do you think of all the Earth Day promos?