andrew chaney, orange power - national green brands forum, 17th june 2010, melbourne

“Greenwashing - Lessons Learnt”Presented by Andrew Chaney

Managing Director

History & Background1994 Formed company

1999 Launched 'Orange Power' brands nationally through Coles, Woolworths & independents.

2005 Set up our own manufacturing & laboratory facility in Dandenong.

2008 Gained accreditation from GECA for a range of Orange Power products

2009 Purchased the AWARE laundry Powder business

2009 Gained Planet Ark endorsement for Orange Power

2009 Set up public company 'Aware Environmental Ltd'

2010 Purchased the ACTIZYME drain treatment business

Our 5 Year Goal• To be the leading environmental brand

by 2012

Our 5 Year ‘Green’ Strategy -

1. Seek Independent verification of green claims2. Secure endorsement from a well respected &

leading environmental organisation3. Ensure all formulations meet worlds best

environmental standards whilst still performing as well as leading brands

4. Establish Public Company to attract investment

5. Build the worlds best environmentally sustainable manufacturing facility

….and then, just as we got going - ‘Choice’ targets Orange Power for Greenwashing …on national TV !!!

The following 17 ‘greenwash’ claims were singled out by Choice in May 2008 for our Multi Purpose Cleaner.

1. ‘Environmentally Responsible’

2. ‘natural orange oil’

3. Pictorial use of ‘globe’

4. ‘Utilise the natural cleaning properties of Orange Oil’

5. ‘Renewable resource’

6. ‘Reduces Waste’

7. ‘Supports Fruit Growers’

8. Biodegradable9. Safe for Septic Systems 10. Not tested on Animals 11. No Harsh Fumes12. PETE and Trigger Cap Recyclable 13. No Bleach14. No Chlorine 15. No Caustic16. No Ammonia17. No Phosphates

Now…how to rebuild our lost credibility!

Ouch that hurt!!

Continue with our strategy….

1. Finalise independent verification of our green claims via GECA.

2. Bring forward Planet Ark audit & proposed endorsement

Who is GECA?

• Internationally recognised certification agency for brands and products/services to ISO 14024

• Good Environmental Choice Australia is a not for profit organisation

• To encourage the demand for and supply of products which reduce the stress on the environment during their entire life-cycle.

Label changes

2007 Label Current Label

Advertising Strategy• $2 million TV and magazine campaign• Consumer Education focus• Tanya Ha and Cool Change co-ordination

Did this strategy work??

YES!!

Sales Growth

ORANGE POWER SALES

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

Fin. YEAR

$,0

00

GECAJune 08

P. ArkJuly 09

+30.1%+15.6%

Do you recognise / know what the GECA logo represents?

No idea

Some idea

Have seen Orange Poweradvertisement / products andknow what it represents

Fully aware and understandits meaning

2009/10 Customer Survey results (after Coolchange TVC)

Does the GECA accreditation influence your choice when selecting Orange Power products?

No

Occasionally

Most definitely

2009/10 Customer Survey results

Future Plans – Build Australia’s First Environmentally designed manufacturing Facility

We not only talk green….. we drive green!!

3600km on recycled veggie oil in the 2008 Variety Bash (we raised $20,000)

Further information:

• www.orangepower.com.au

• www.awareenvironmental.com.au(see here for investment opportunities)

• www.greencaredev.com.au