9 ‘Ethical’ Small Brands That Are Actually Owned By Major Companies
- Posted on October 3, 2011 at 7:40pm by
Becket Adams
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Via Business Insider: for years now, Burt’s Bees has been marketing itself as a local brand from Durham, N.C., and is proudly described as “Earth Friendly Natural Personal Care for The Greater Good.”
However, it downplays the fact that it was sold for nearly a billion dollars a few years ago to mega-corporation Clorox.
Brands like Burt’s Bees and Ben & Jerry’s attract a growing market that has been described as “environmentally-conscious consumers.“ They rely on being marketed as ”local and natural,” but many consumers are unaware that these brands now belong to major corporations, reports Business Insider.
To be sure, many of these companies began as small, entrepreneurial startups, and though being bought out by a corporation may have been a hard decision, the owners all sought ways to preserve their image/ideals as a part of their buyout deals.

Image: By cazatoma on Flickr
Mars bought Seeds of Change in 1997 Seeds of Change was founded as a seed company specializing in organics back in 1989. After candy-giant Mars bought the company, Seeds of Change was allowed to keep running mostly as it did before.
In 2010, Mars decided to close the Seeds of Change Research Farm and Gardens, which boasted thousands of varieties of plants.The shutdown drew criticism because the farm had been synonymous with the brand and was a part of its marketing.

General Mills bought Cascadian Farm in 1999
Cascadian Farm used to be famous for its cereals with “no added sugar.” In 2010, this label disappeared from its boxes.A Cascadian Farm customer said her children noticed a funny new taste in their Purely O’s. It turned out the cereal had tripled its sugar count.
Cascadian Farm customers felt duped and complained the new cereal tasted “dreadful” and looked “disgusting.”

Image: By Mr. T in DC on Flickr
Unilever bought Ben & Jerry’s for $326 million in 2000
The ice-cream maker said Unilever was determined to nurture Ben & Jerry’s commitment to community values, and its commitment to donate 7.5 percent of profits to social causes.
However, in 2002 the company was accused of abusing its “All Natural” label by the Center for Science and Public Interest and in 2005 Ben & Jerry’s CEO Walt Freese admitted the company had grown soft on continuing its traditions of social consciousness.

Image: By Mr. T in DC on Flickr
Kellogg’s bought Kashi for $32 million in 2000
Kellogg’s bought the maker of natural cereal for an undisclosed amount.
After the acquisition, customers became afraid of Kashi using genetically modified organisms, or GMOs, known to be used in Kellogg‘s’ cereals.
.

Image: By smiteme on Flickr
ConAgra bought Lightlife Foods in 2000
Lightlife produces vegetarian and vegan meat substitutes like Smart Deli slices and Smart Bacon, which made it a logical acquisition target for ConAgra, one of the world’s largest packaged food companies.
But ConAgra has also fought against some natural food initiatives. In 2002, the company joined its competitors in stopping the state of Oregon’s Measure 27, which would have required it to label products that have genetically-altered ingredients.

Image: Flickr
Coca-Cola bought Odwalla for $181 million in 2001
“I think everybody is now chasing nourishment.” said Odwalla President Shawn Sugarma in 2004. “Obesity and its related health problems are a huge concern for anybody in the food business today.”
Known for blends such as C Monster, Mo’ Beta, Rooty Fruity and Viva Las Veggies, the juice and natural food bar makers stopped selling the fresh-squeezed orange juice that had made Odwalla famous since it wouldn’t last the days and weeks the juices are in transit or on the shelf.

Image: res-nest
Colgate-Palmolive bought Tom’s of Maine for $100 million in 2006
After the acquisition, Tom’s of Maine loyalists complained about the new toothpaste’s sweet flavor, the new plastic packaging, and the new smell of deodorant soap.
Basically, they complained about everything.
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L’Oréal buys Body Shop for $1.1 billion in 2006
An index that tracked public perception of more than 1,000 consumer brands found that “satisfaction” with Body Shop had slumped by almost half since the deal by Body Shop founder, Dame Anita Roddick, to sell the company to L’Oréal for $1.1 billion.
Campaigners against animal testing and the Swiss multi-national Nestlé, which has a 26 per cent share in L’Oréal, also called for a boycott of Body Shop.

Image: By deedoucette on Flickr
Clorox bought Burt’s Bees for $913 million in 2007
After the deal went through, scores of customers called Burt’s Bees and accused the company of selling out.
John Replogle, the chief executive of Burt’s Bees, says he personally responded to customers who left their phone numbers.




















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Comments (92)
COFemale
Posted on October 3, 2011 at 9:24pmA couple weeks back I went shopping at Safeway in my area and bought their brand Softly TP. Imagine my surprise when I got home and took a few rolls out of the packaging only to find they were 1/4″ shorter than the previous purchase. These 1/4″ shorter rolls were also in the same packaging that my previous purchase indicated; size dimension and square footage. I sent an email to Safeway telling them about this and I did receive a response they would look into it (right), however I don’t think anything will be done. The brand is Softly, so if anyone else buys this brand measure your toilet paper rolls to make sure they match the packaging. This is not the only time the TP companies tried to rip people off.
Report Post »ejbonk
Posted on October 3, 2011 at 10:40pmPaper Product Companies have since the 1970′s Energy Crisis made Rolls smaller and Smaller and the number of sheets less and less in order to appear to keep the price down so consummers do not realize that they are getting less and less for the same price. It woorks so well for a long period of time that Food Companies like General Mills,Post and Kelloggs started to follow suit. I feel that it is deceptive,eventhough they do change the wight or size numbers on the box and/or pagageing material. I mean Who really looks at that stuff with a screeming 5 year old in your ear,“I want this” or “I want to Go home and watch sponge bob NOW!”
Report Post »staythecourse
Posted on October 3, 2011 at 11:55pmIt is the same with food in cans. The cans are the same size but the amount of food is decreased. they just increased the liquid in the can to fill up the space. Ice cream is also being shorted. They whip the icecream up so it is mostly air. Somedays I wish I knew what a gallon of icecream used to weigh just so i could compare the actual decrease in product that we are getting.
Report Post »independentvoteril
Posted on October 4, 2011 at 12:00amThis is something recent in SCOTT’S but I had some old rolls and when we got the new ones I showed everyone the difference in widith.. they couldn’t mess with the amount of sheets since it says 1,000 so the cut the width.. I KNOW this will sound stupid by my dad had a weird sense of humor and back in the 60′s wrote to Scott telling them he actually counted the # of sheets on the roll.. he said one was 987.. one was 940 and one was 9991/2 since the last sheet STUCK to the roll.. would you believe they sent him 3 rolls of toilet paper? My dad has passed away but somewhere in his stuff is the letter from Scott’s we laugh when we show it to the kids.. but that‘s when companies were run by the owners not a bunch of bimbo CEO’s ..
Report Post »jb.kibs
Posted on October 4, 2011 at 12:18amthis is just great…
Meet the new boss, same as the old boss…
Report Post »jb.kibs
Posted on October 4, 2011 at 12:20amWendy’s did this when they first came out with their 1$ menu, it was great, you got a normal burger for 1$, then not long after they downsized everything, smaller burgers, smaller fries, etc… i haven’t at at wendy since that day…
Report Post »Ruby Boggy-Hillocks
Posted on October 4, 2011 at 9:27amIt isn’t just that brand…Angel Soft has been doing it a while. I contacted them and was told ‘we’ approved them cutting down the size, etc….
Report Post »TomFerrari
Posted on October 4, 2011 at 10:36amIn business classes / economics classes in college, we called it the “candy bar” paradigm. Shrink the product, keep the price the same, introduce ‘new’ ‘larger’ sizes with new higher prices. repeat as needed.
Report Post »poster
Posted on October 4, 2011 at 12:26pmThis is happening throughout the supermarket — it’s under-the-radar inflation!
Report Post »The half-gallon of ice cream is now 48 oz..(no price reduction).
The 24-can case of Coke is now 20 cans (no price reduction)
The one pound bag of coffee is 12 oz. (no price reduction)
Few products are exempt from this downsizing.
If they could figure out how to call 10 eggs “a dozen”, they would.
If they could call 12 ounces “a pound”, they would.
betterthantv
Posted on October 4, 2011 at 2:09pmI work for McKee Bakery (look it up, you know who they are) and can say that most of you are hitting the nail right on the head! TomFerrari – is dead on! This all started about 4-5 years ago when gas prices started skyrocketing. First they had to make up for all the fuel costs, now it’s the rising price of commodities. The bigger companies just aren’t sure how to handle all this. Anyone who follows the stock market will understand that these rising costs aren’t just “made up”. They are very real. As the companies pay more for raw materials they are forced to either raise prices or shrink packages. I’ve noticed this with several brands, not just McKee. Inflation is here and it’s here to stay. The question is what are we going to do about it? Act like the morons at the “Days of Rage” protests and go after these “evil” companies or perhaps go after the Fed and the politicians that are deliberately causing inflation?
Report Post »Oldconservative
Posted on October 4, 2011 at 3:32pmThis is FAR from a new concept. 200 years ago the British navy allowed meat suppliers to give 14oz. pounds to compensate them for spoilage.
Report Post »oldoldtimer
Posted on October 4, 2011 at 8:02pmThey have increased the diameter of the rollers in tissue and paper towels. They have also reduced the size of the sheets, number of sheets and now are fluffing the paper so the rolls appear to be just as big as before. Squeeze them to see if they are puffed up. Oh but to have a 1900′s Sears catalogue. Or maybe theroputic papers sans the splinters and wood chips.
Report Post »libhater
Posted on October 4, 2011 at 9:43pmIts not their fault !!! Its the devaluation of the dollar. They don’t want to raise their prices when their prices go up. So they do other cost cuting. Blame helicopter Ben.
Report Post »neiman1
Posted on October 3, 2011 at 9:24pmThe best part is all these social do good ers all sold out their companies and their values for a buck. Amazing. Capitalism at its finest. I believe in social good and the environment until someone pays me enough to bail.
Report Post »survivorseed
Posted on October 4, 2011 at 2:34amUnfortunately if they don’t sell out, the corporations will just put them out of business
Report Post »HuskerDave
Posted on October 4, 2011 at 11:02amAmen.. This isn’t bad news, it’s good news!
First, that the silly granola crunchers learned some capitalism.
Second, that a large company with greater distribution channels was able to buy a product to increase their product lines.
Third, that we have something new to rub in the faces of the fake-socially-conscious crowd.
Report Post »StanO360
Posted on October 4, 2011 at 2:06pmBlah Blah Blah, Boo hoo! A socially responsible company is one that doesn‘t break the law other than that it doesn’t matter. In fact, this story proves that. When a company does something so stupid as to spend millions buying a company for it‘s formula of success and it’s niche market and then changes the product . . . well the project fails.
Guess what they screw the product up . . . then someone else will fill the need (maybe even the old owner).
Report Post »IntegrityFirst
Posted on October 4, 2011 at 2:11pmMaybe everyone should stop whining and start acting. That is our GD problem in this country. We want the effing government to take care of it for us. We don’t want to lift our fingers to write a letter, or find the number to call a company. We would rather go to football games. No, no responsibility for us. Let the government do it, let them get involved. People don’t realize is that when they speak loudly enough, companies change. When we get involved and stay informed we have the power, not the corporations.
And what’s with this **** about capitalism and selling out?! Isn’t that what we all want? Fabulous wealth, so we don’t have to worry about money. That’s what these people did. They turned an idea from nothing into something worth millions or billions, letting their principles drive the company until they had created something large enough to sell and walk away wealthy. That’s capitalism.
Report Post »Blazin in Texas
Posted on October 3, 2011 at 9:01pmStop buying Romaine in the bag from a large marketer . You can buy a head of Romaine for $1.69, wash it and wrap it in a towel and it will stay fresher than the bag stuff at twice the price.
Report Post »SgtB
Posted on October 4, 2011 at 1:34amOr you can build a small 4×8 raised bed in your yard and grow a rotating crop of romaine or even better caesar lettuce and plant a row a weed in the 4′ direction until you get to about 8 rows of 6 or so. Then, by the time you plant the last row you’ve already started to harvest the first row and next week you can plan back in the first row. Just make sure to have a good compost pile and throw a little onto each row as you plant it to keep the soil nice and fertile.
This way the cost is …
$.99 / seeds
$30 / wood (3 – 2×6,8,10 depending on how tall you want and how much soil you can afford)
$40 / dirt, but only if you don‘t already have dirt or don’t know where to get some for free, you can get cheaper if you have a truck that you don’t mind a frontend loader dumping straight into the back of.
$10 / water for a year
With this investment of ~$81 you can grow your own lettuce year after year in the spring, summer, and fall. Just make sure to let some of you best plants go to seed every year and save some. If you’re lucky, you may not even need to reseed next year as you will almost always have volunteer lettuce if you let it go to seed. This setup will net you an infinite amount of lettuce and years of light exercise and a small daily doseage of vitamin D. Buying lettuce from the store will net you 54 heads on $81 before taking into account for taxes.
Report Post »Solzhenitsin
Posted on October 4, 2011 at 12:53pmIn general we should use as much whole-food as possible and as little processed food as possible. It’s better for the pocketbook and better for the body.
Report Post »StanO360
Posted on October 4, 2011 at 2:09pmHearts of Romaine are about $.75 at Costco (6 hearts per bag) and last a while (10 days +/-). Your not including the trip charge either, with two teenage boys we will eat 1 head a meal. So I would have to go to the strore every other day.
Report Post »artistskeptic
Posted on October 3, 2011 at 9:00pmUnfortunately, the large corporations buy the succesfull small companies with respected brands, they first eliminate all the small company personel, impose irrational cost cutting demands, change the product to conform to a cheaper criteria, and then out source the manufacture to an off shore cheap location. I participated in this cycle for 30 years for my own survival. This is the corporate greed that the snotty nose college sophomores protest but haven’t the vaguest idea of how it works.
Report Post »StanO360
Posted on October 4, 2011 at 2:14pmIt’s not greed, it’s stupidity. What do you do for a living? You don’t work for a profit? Just reimbursed for gas and lunch? What? You get a profit? You are so greedy!!!
Don‘t buy there products if you don’t like it. It’s not greed, they are obligated to make money, it’s their job. They have investors that expect and deserve a return on their investment. You don’t have any investments? Maybe you should cap your investments to 3% so you don’t get involved in any “greedy” companies.
Report Post »el thinko
Posted on October 3, 2011 at 8:55pmThis is great news to entrepeneurs! The free market is now opened up for more small companies to compete in. If they achieve success and decide to sell out, good for them; at that point more room opens in the marketplace. The tunnel vision of these negative posts is just sad. Opportunity is the cornerstone of American Exceptionalism.
Report Post »Charb
Posted on October 3, 2011 at 9:20pmThanks, El Thinko. Opportunity abounds!
Report Post »artistskeptic
Posted on October 3, 2011 at 9:44pmGood luck El Thinko, When a $500M compny is destroyed you have a chance of replacing it equal to the chances of winning 10 consecutive Mega Ball lotteries.
Report Post »Gripes
Posted on October 3, 2011 at 9:46pmI’ll take it one step further, this also provides the entrepreneur with capital to start up more companies. An exit strategy can be a wise way of creating capital for another start up or going into capital investment and supporting other people’s start ups for further profit. Profit is a means to an end, not just the end.
Report Post »el thinko
Posted on October 4, 2011 at 10:17amGripes: Thank you! Brilliant observation.
Report Post »ArtistSeptic: Ben, Jerry and Tom of Maine are livin’ the dream, baby. The American Dream. Time for your Prozac. I don’t need $500,000,000 to live my dream. I‘m sorry if that’s what it takes for you.
Smokey_Bojangles
Posted on October 3, 2011 at 8:48pmA Commie will sell out quick,take his money…then want YOUR Money.
Report Post »Scottmcm
Posted on October 3, 2011 at 10:21pmBut first he will make sure all the proceeds from selling his small company go directly into an account in a jurisdiction with favorable tax laws or directly into an off shore account in the Cayman’s.
Then and only then he will come looking to tax your money any way possible.
Report Post »Islesfordian
Posted on October 3, 2011 at 8:47pm25 years ago there was a fantastic little company that made ice cream sandwiches using large cookies, Chocolate chip, Peanut butter, Oatmeal, and covered in chocolate. You could get them in different flavors of ice cream and with different cookies. They were called Harbor Bars (they were just a few miles from Bar Harbor, Me). They were bought out by some company in Connecticut and the size and quality went down fast.
I don’t even know whether you can get them here anymore. they really weren’t very good anymore
Report Post »Creativethinker
Posted on October 3, 2011 at 8:44pmI used to buy Cascadian Farms frozen vegetables because they were organic and easy to throw in a steamer, then I noticed the vegetables no longer came from the USA, they started to come from China! Stopped buying them.
Report Post »TRILO
Posted on October 3, 2011 at 8:57pmGood for you. I read every label. I am shocked at the amount of food that comes from China and foreign countries.
Unless you grow it yourself it is hard to know what is in your food.
Report Post »BobtheMoron
Posted on October 3, 2011 at 8:43pmAll of this “Natural’ and “Earth Friendly” is hogwash. It is marketing that takes money from dummies that don’t do a lot of thinking. Sea salt and mined salt are exactly the same. Mined salt can be purchased with or without iodine added. This is one of the many marketing lies told by the ‘natural’ companies. As for those “Evil” corporations they undoubtedly researched the products and found that more people liked the new formulations. Corporations work for your dear old Nana and help pay for her retirement and millions of other stock holders like her.
Report Post »hillbillyinny
Posted on October 3, 2011 at 8:37pmPart of the problem when you found a good small company is that if you and your product is really good and there is much word of mouth or other marketing you can get too big to control your company and product. A lot of small entreprenuers want to be involved in the product, NOT in the selling, marketing, distribution, stocking, etc.! This also happens on small and family farms. Once can be an excellent producer of a product but stink or be very uncomfortable with marketing, processing, delivery, customer service, etc.
If we could partner those who have the ideas and/or want to do the production with those who have skills in other areas of small business many would continue to own their own company(ies) longer. However, we are such a mobile people today, that as people relocate and bring in “products from home,” others learn about the products, want the products and distribution must grow to enlarge demand.
In addition as small business and small farm owners age, keeping up with the business gets harder, even if there is still strong desire to continue the company themselves. As we age we often have changes in ourselves and our lives that just does not allow us to continue to manage and control our companies in the same way at the same rate. I know of some who actually close down their company at this point, rather sell or pass it on to someone else.
Another company that was private, IAMS dog food, is owned by Proctor and Gamble, was Paul Iams and has changed!!!
Report Post »broker0101
Posted on October 3, 2011 at 8:34pmNot to worry Blazers. Mercury Radio Arts will never be acquired. EVER. Although bankruptcy is a very real possibility.
Report Post »Beck Avoids Ineligibility
Posted on October 3, 2011 at 8:47pmYou think Glenn Beck is telling you the truth, the whole truth and nothing but the truth? A lie of omission is just as bad as a lie one tells. Sometimes it’s much worse! By not telling America the truth about Obama’s ineligibility and fraud, he is allowing the usurper Obama to continue doing terrible damage to America.
Now for something completely different.
Want to hear what Rush had to say about Obama’s ineligibility, that Glenn was too chicken to report?
Report Post »http://www.youtube.com/watch?v=GbGpNnTrjuU&feature=youtu.be
where is JG
Posted on October 3, 2011 at 9:20pmyou sir are a Dbagger, WOW! you can protest wall street greed and post on this site youhate at once! your sorry parents must be very proud.
Report Post »Steve
Posted on October 4, 2011 at 5:40amBeck Avoids Ineligibility
Yawn
Report Post »M 4 Colt
Posted on October 3, 2011 at 8:34pmWell how about that, even the environment loving hippy s who started these company’s all along wanted to be RICH just like the evil giant corporations they all love to hate,so in the end they all sold out for the BIG BUCKS go figure.
Report Post »meeester
Posted on October 3, 2011 at 10:35pmyou’re racist
Report Post »M 4 Colt
Posted on October 4, 2011 at 4:38amMeeester how is it that me telling the truth about your left wing liberal buddy’s that makes me a racist. You know like the other sell outs on the left like Micheal Moore and Shaun Penn who have made millions off their movies, you live in the streets while they live in a penthouse laughing at you all the way to the bank. Your just another pin headed tool, blinded by the liberal lies told to you by people on the left who play you like they understand what your upset about in our country all the while making MONEY OFF YOU FOOLS!! how dumb can you be.
Report Post »ThomasUSA
Posted on October 3, 2011 at 8:29pmIt is funny all these “useful idiot anti-corporate revolutionaries” came on corporate made buses, using corporate fuel, ate corporate made foods, slept in corporate sleeping bags, in their corporate made clothes and shoes, waving their corporate made cell phone cameras. IF they were true anti-corporate revolutionaries, they’d be Amish!
Report Post »cgizzy
Posted on October 3, 2011 at 9:46pmeven the amish run their own business of a sort… they sell their goods to those willing to pay. It may not be big multi-million dollar corporations, but they do the same as any other business or corporation.. make a product that others want and they sell said product at a certain price to those willing to buy it.
Report Post »SZQ
Posted on October 4, 2011 at 1:54amI wonder where they go to the bathroom.
Report Post »MRL325i
Posted on October 3, 2011 at 8:27pmRolling Rock beer is now a Budweiser brand.
Report Post »jabberwock
Posted on October 3, 2011 at 10:23pmBudweiser was bought out by a popular Mexican brewery. Do the homework.
Report Post »Is it now unreasonable to expect the coming debut of the Budweiser Burro Team? So sad for St. Louis and the U.S.A.
StanO360
Posted on October 4, 2011 at 2:21pmI think that‘s Coors isn’t it? Budweiser was bought by a Dutch company!
Report Post »mr.goodvibe
Posted on October 3, 2011 at 8:14pmIts the corporations man!
Report Post »408 CheyTac
Posted on October 3, 2011 at 8:13pmno, say it’s not so! I can’t believe there is corporate hypocrisy is still alive and well in the USA!
Report Post »grumpyt
Posted on October 3, 2011 at 8:06pmLook at how rich the founders of these companies got! A’int CAPITALISM wonderful?
Ben & Jerry’s? At least the commies are out and $$$ rule. If you want to know that your food is REALLY all natural, make it yourself. It is better that way.
Report Post »eat-more-bacon-USA
Posted on October 3, 2011 at 8:00pmColgate-Palmolive ruined Tom’s of Maine. I used Tom’s products for many years and after the buy-out, the formulas were changed, the packaging was changed, the prices went up and the product sizes were reduced. Many products were completely replaced – it is a great tragedy – Tom’s products are now garbage. I never bought Tom’s products because of the story behind the company, I only bought them because I liked the products – I have abandoned these for better brands now. I was a twenty-year, loyal customer – so sad.
Report Post »drtyTshrt
Posted on October 4, 2011 at 8:48amI was going to buy Toms tooth paste this past weekend. I want to rid my body of Sodium Laurel Sulfate. Imagin my surprise when I read the label stating that Toms tooth paste now contains the dreadful chemical.
Report Post »StanO360
Posted on October 4, 2011 at 2:24pmIt’s the market at work. You will (and should) punish Colgate for their ignorance of the market. They will have paid a lot of money and not got the return they thought they would. The should have left it alone as a product and used their marketing skills and distribution skills to make it even more profitable.
Report Post »AB5r
Posted on October 3, 2011 at 7:59pmBig beer companies do that also with the micro brews.
Report Post »ZengaPA65
Posted on October 3, 2011 at 7:59pmNever heard of 7 of them.
Report Post »spmcintyre
Posted on October 3, 2011 at 7:57pmJust a poke in the eye for the hypocritical lefties.
Report Post »Mousey
Posted on October 3, 2011 at 8:26pmahmen
Report Post »Attention2Detail
Posted on October 3, 2011 at 7:57pmIf the makers of these natural products were that dedicated to their products they wouldn’t have sold out. Money was more important to them than their customers. I’m tired of all these holier than thou liberals who just have a high price tag.
Report Post »spmcintyre
Posted on October 3, 2011 at 7:55pmThey are just making a point at how hypocritical the lefties can be.
Report Post »MOLLYPITCHER
Posted on October 3, 2011 at 7:49pmTom’s of Maine is definitely not what it used to be. They really do down play the fact that they are owned by Colgate. They still try to make make their packaging look mom and pop. And the toothpaste IS too sweet.
Report Post »heavyduty
Posted on October 3, 2011 at 7:48pmThis ain’t news! They been doing this for decades. But they won’t tell you that little bit of information. Because what difference does it make? If they product is not changed then I can’t see how it makes a difference to who owns it.
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